When you are dodging paying your bills, the last thing you want to do is have a chat with your creditors. But when you miss payments your creditors are very keen to speak to you. It is a difficult and uncomfortable situation.

Debt Advisers will encourage you to stay in contact with your creditors (unless the debt is potentially statute barred) because it is in your best interests to do so, see our 'Top 10 Reasons to Talk to Creditors' below.

A few creditors might behave unreasonably,  take a look at our 'Creditor Harassment' information, you could have cause to complain about a creditor.

Most creditors will usually give you a certain amount of time to get independent debt advice to treat you fairly and help you find a solution to your debt problems.

It is also a requirement for many creditors  to offer a period of breathing space as part of their industry codes of practice.

These include:

• Credit Services Association code of practice

• Finance & Leasing Association Code of Conduct 

• Lending Standard Board Lending Code PDF

If your creditor is a member of any of the above organisations they should give you breathing space if you let them know you are seeking debt advice. You might be asked for your debt advice case reference number, Money Advice Hub provides a debt advice passport that you can use with all of your creditors. 

Informal breathing space may only be agreed for short periods and you'll be expected to confirm your debt advice action plan when they end. You may be required to supply additional financial information when negotiating lower payments or hold periods, it's advisable to work with your creditors to get the best outcomes.

If one of these type of creditors unreasonably refuses to give you breathing space, you can raise an official complaint with them and if then not satisfied with the response, you can escalate the complaint to the Financial Ombudsman Service.

Although non-priority creditors are more likely to agree informal holds with people in financial distress nowadays, some still insist on some form of evidence to back up requests to lower repayments, or to put your account on hold. It's important to understand a consumer credit regulated creditor's contractual and regulatory right to contact you about the debt from time to time and confirm your financial position and affordability to ensure that they treat their customers fairly. 

If you are asked for further information by a creditor, it is in your best interests to confirm your financial status as soon as possible.

It may be more difficult to negotiate lower repayments or a hold with priority creditors as their powers of debt recovery are wider and usually more serious, such as rent arrears and losing your home or council tax arrears and attachment of earnings deduction. It's not always possible to negotiate satisfactorily with all creditors but whatever the outcome, you should continue to pay what you can, however small. If your debt is ever escalated to a court application, it will be

1. Your creditors are more likely to negotiate with you if they know your circumstances.

2. You can request breathing space to give you time to find a debt solution.

3. Interest and charges are more likely to be frozen.

4. If you have a recognised vulnerability like mental health or bereavement , most creditors have different procedures to deal with you sensitively.

5. You can usually put a hold on legal enforcement, such as bailiffs (enforcement agents), attachment of earnings, deductions from benefit etc.

6. You are  more likely to be able to defend any legal claims and/or negotiate with a court if you can prove  good  conduct dealing with your debts.

7. Your creditors will stop bothering you so much when you tell them what is going on.

8. You will be able to gather important information about your debts to help you choose the most suitable debt solution.

9. Your creditors will usually stop making requests for unaffordable repayments.​

10. You will be taking control of the situation which will give you greater peace of mind.