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Informal Arrangements

An informal agreement is an agreed settlement with your creditors where you pay back your debt at a reduced rate.

The reason you would enter into an informal arrangement is if you were having difficulties paying back your debts at their current rate and the other options, such as an IVA or bankruptcy order, aren’t the right solution for you.


  • You don’t have to seek the agreement or sanction of a county court.
  • An informal arrangement doesn’t cost anything to set up.
  • The time involved in putting together an agreement is significantly less than the alternatives.
  • You can get free help putting together the arrangement by contacting your local CAB, Advice Centre, or through the form on our website.


  • It is a non-governmental debt solution with no legal standing.
  • Your creditors can ignore your request if they do not like it.
  • An informal arrangement can lead to legal or collection processes being started, as it is an admission that you are currently in debt.

We suggest that you seek the advice of a financial professional before deciding to go ahead with an informal arrangement as it may greatly affect your future standing.

If you feel that an informal arrangement is the best way forward please feel free to contact your creditors using one of our sample debt letters:

  • Holding letter - This letter is to be used to send to creditors if you aren’t able to make an offer immediately and need time to make a decision.
  • Offer letter - This letter is to be sent to your non-priority creditors when you want to make an offer to pay them back at lower rate than you currently owe. For more information about offer letters to your creditors please contact our free information service.

  • No offer letter - This letter is to be sent to your creditors if you are unable to make any offer to them. Before making the decision to send this letter it’s best that you seek financial advice to make sure this is the best way forward.