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Freeze interest and charges: the request letter

When the balance grows faster than payments shrink it, the first letter to send asks the creditor to stop the clock.

Written by The My Debt Cleared editorial teamLast reviewed 23 August 2026Jurisdiction United KingdomEditorial policy
Creditors can freeze interest and charges at their discretion, and regulated lenders must consider forbearance when told a customer is in financial difficulty. A written request explaining the difficulty, backed by a budget, succeeds far more often than people expect — especially paired with a token or reduced payment showing good faith.

When to use this

Use this when payments no longer cover the interest, when a temporary crisis (illness, job loss, separation) has cut your income, or as the opening move before a formal repayment offer. It works on cards, loans, overdrafts and catalogues.

The letter

Your name
Your address
[Date]

[Creditor name and address]

Account/reference: [number]

Dear Sir or Madam,

I am writing to tell you that I am experiencing financial difficulty and to ask you to freeze interest and all charges on the above account.

My circumstances changed because [brief reason — e.g. reduced income / illness / relationship breakdown]. I have completed the enclosed income and expenditure budget, which shows that my available income does not currently allow payments at the contractual level. Continuing interest and charges are increasing the balance faster than I am able to reduce it.

I am not seeking to avoid this debt. I can currently offer £[amount] per month while my situation is as set out, and I will review this with you as things change.

Please confirm in writing that interest and charges have been suspended, and treat this letter as notice under your obligations to consider forbearance for customers in financial difficulty.

Yours faithfully,
[Name]
Enc: income and expenditure budget

Before you send it

Fill every bracket, attach the budget, and keep the tone exactly this flat — the letter is a record, not an appeal. Expect an acknowledgement within their complaint-handling timescales; a refusal should be reasoned, and an unreasoned one is worth a follow-up referencing their duty to treat customers in difficulty fairly. Pair with the repayment offer letter once the freeze is agreed.

Keep a copy of everything you send, send by a method you can evidence, and if your situation involves court deadlines or enforcement, free debt advice before posting anything is the better order of events.

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