[John Smith]

This is used as a temporary measure only. It is useful for people who are experiencing temporary difficulties, but whom may be able to resume payments at a future date e.g. someone in hospital who has had benefit reduced, an intention to resume work, if a lump sum is expected in the near future etc. It can also be useful for someone who may need some time to organize their finances.

This strategy gives a period of time where no further collection action is taken, so chasing letters and phone-calls should cease. It is important that the creditor agrees to freeze the interest and charges as this will prevent the indebtedness increasing further. It does however require a review at a later stage, when other options will then need to be considered, depending on the circumstances at the time of the review.


Dear Sir/Madam

Re: (provide name address and reference number if known)
We are currently assisting the above client with their finances, and enclose a signed letter of authority for your records.

Enter a paragraph explaining personal circumstances for the financial difficulties. You may also need to give reasons for any high expenditure on the financial statement especially if this expenditure relates to their illness

We enclose a financial statement prepared with the client, using realistic budgeting figures, given their current circumstances. This also shows the current level of debts outstanding. You can see from this information, that the client is finding it difficult to meet even their basic needs at this time. Therefore we are unable to make any realistic offer of payment at this time.

We request therefore that you give consideration to allowing a suspension of the payments on the account for a period of ...... months, when the situation can be reviewed. Include here any possible future potential if appropriate to start repayments again e.g. expecting to go back into work. If interest and charges are being added to the account, it would be appreciated if you would agree to waive these during this time, so that the indebtedness does not increase further.

We hope you will be sympathetic to our request as this would greatly relieve some of the stress the client is experiencing.

I look forward to a positive response in the near future.

Yours faithfully

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