How to deal with creditors when you're struggling with debt

If you're behind on payments and worried about money, you're not alone. Millions of people are struggling to keep up with their bills as the cost of living continues to rise.

When you’re in this situation, hearing from creditors, whether it's a bank, loan company, credit card provider or utility company, can feel overwhelming.

But here’s the good news: there are things you can do to take control and stop things from spiralling. Talking to your creditors might feel scary but being open and honest is one of the best ways to ease the pressure and protect yourself.

Here’s how to deal with creditors when you're struggling with debt.

1. Don’t ignore them

It might be tempting to avoid calls, texts or letters from creditors, especially if you don’t have the money to pay them. But ignoring the problem won’t make it go away. In fact, it can make things worse. Interest and charges might keep building up, and the creditor could take further action like passing your debt to a collection agency or applying for a County Court Judgment (CCJ).

Facing the issue head-on puts you in a stronger position.

2. Get a clear picture of what you owe

Before speaking to your creditors, it helps to know:

• Who you owe money to
• How much you owe
• How much you're behind by (if you're behind)
• What kind of debt it is (credit card, utility bill, loan etc.)
• Priority bills (like rent, mortgage, energy or council tax) should be paid first because they could have the most serious consequences if you don’t pay them.

3. Talk to them early

If you know you're going to miss a payment (or already have) contact your creditor as soon as possible. Many lenders have trained teams to support people in financial difficulty. Let them know what's going on, explain that you're struggling, and ask what support they can offer.

You might be able to:

• Pause or reduce your payments
• Get extra time to pay
• Freeze interest or charges
• Set up a more affordable payment plan

If you're dealing with a utility company, ask about hardship schemes or social tariffs. You can find a list of energy hardship schemes and water bill support on our site.

4. Keep a record

Always keep a record of any communication with creditors, whether it’s a phone call, email or letter. Make a note of the date, time, who you spoke to, and what was said. This can help if there are any issues later on.

5. Only agree to payments you can afford

It’s important not to offer more than you can realistically manage. If you can only afford £5 a month, that’s OK - your creditor can’t force you to pay more than you can afford. They may ask for a breakdown of your income and spending, so it helps to create a budget beforehand.

You can use our free budget planner to get started.

6. Get debt help

You don’t have to deal with this on your own. We can help you understand your options and support you in exploring solutions that might be suitable for you. Find out more about how to get help with debt here.

7. Remember, things can get better

It might not feel like it right now, but things can improve. Taking that first step by opening up to your creditors or asking for help can be the turning point.

If you're feeling overwhelmed or your mental health is being affected by money worries, you’re not alone. Support is available from charities like Mind, Rethink Mental Illness and the Samaritans (call free on 116 123).

You can also ask a health or social care professional to help you complete a Debt and Mental Health Evidence Form, which lets creditors know about your mental health situation so they can treat you more sensitively.