Informal repayment arrangements

Some people may be able to agree revised repayments directly with creditors without entering a formal insolvency procedure.

Reviewed 2 November 2026General information, not debt advice

GOV.UK recognises that an informal agreement with creditors can be one way of dealing with debt. An informal arrangement is not the same thing as a formal insolvency procedure.

What an informal arrangement may involve

A creditor may agree to accept reduced payments, a temporary payment arrangement or another change. The exact terms depend on the creditor and the circumstances.

Important limitations

A creditor does not have to accept an informal proposal.
Interest or charges may continue unless the creditor agrees otherwise.
Different creditors may respond differently.
Priority debts and essential bills may need separate attention.

If you are unsure what you can safely afford, or several creditors are involved, free debt advice can help you understand the wider picture before making proposals.

Primary sources

GOV.UK: Options for dealing with your debtsPrimary or public authority source, checked 2 November 2026.
MoneyHelper: Options for clearing your debtsPrimary or public authority source, checked 2 November 2026.