Consider opening a Basic Bank Account

If your income is paid into an account with a bank where you are overdrawn or have a loan, you should open a basic account with a different bank and arrange for all your income to be paid into the new account.

Step 6 - Work out offers to your non-priority creditors

List all your non-priority creditors and the amounts outstanding on each account in the Other Debts space on the Debt page of your Financial Statement on your computer. You should include every non-priority company or person you owe money to, even if you have been keeping up with the repayments to them.

The pro-rata payment offers for each account will be calculated automatically. The bigger the debt, the bigger the offer of repayment will be.

Step 7 - Send Offers of Payment to your Non-Priority Creditors

Print the Budget page of the Financial Statement you created in Steps 2, 5 and 6 and sign it. Send a copy to each of your non-priority creditors together with a covering letter. Even if you don’t currently have anything to offer your non-priority creditors, e.g. you need to reduce your priority debts first, or because you don’t have a job and you are reliant on benefits, you should still write to your creditors.

You can find Sample Debt Letters at AdviceGuide.

Use the 'Offer letter to non priority creditors' outline to write to your creditors when you are ready to make an offer.

Use the 'No offer letter' outline only if you have no money to offer at the present time.

For accounts where you have a credit card or a store card, cut up the card and return it with the offer letter, and mention this destroyed card in your letter.

Forward to Steps 8,9 - Start Repaying Your Debts

Back to the main Debt Kit Page