Ask a creditor to hold action: the breathing-room letter
Calls, letters and threats while you are still working out your figures are the worst possible pressure. This letter asks for the pause the rules already expect.
How do I stop a creditor chasing me while I sort things out?
Ask, in writing, for recovery to be put on hold while you get advice or build a repayment plan. Firms regulated by the FCA must not pressurise you to pay in unreasonably large amounts or within an unreasonably short period (CONC 7.3.10R), and must suspend active pursuit of the debt for a reasonable period while a plan is developed (CONC 7.3.11R). Use the time: work out a budget, contact a free adviser, and come back with an offer.
A hold letter or Breathing Space?
A hold letter relies on the creditor following FCA rules and its own policies. Breathing Space is a legal protection in England and Wales: for 60 days most interest, charges and enforcement are frozen across your debts. It can only be started by a debt adviser. If several creditors are pressing, or one is threatening court, Breathing Space is the stronger tool.
The letter
The Letter Builder fills in this letter with your details and downloads it as Word or PDF — free, and the letter never leaves your device.
Your name Your address [Date] [Creditor name and address] Account/reference: [account number] Dear Sir or Madam, I am writing about the above account. I am having difficulty keeping up with my payments. I am arranging free, independent debt advice so that I can make a realistic proposal to all of my creditors. Please put recovery action, including any further charges, referral to a collection agency and any legal action, on hold for 30 days from the date of this letter while I do this. I understand that under the FCA's rules (CONC 7.3.11R) a firm should suspend active pursuit of a debt for a reasonable period while a repayment plan is being developed. I will contact you again before the end of that period with an offer based on a full statement of my income and expenditure. Please confirm in writing that the account will be held. Yours faithfully, [Your name]
Fill it in and download as Word or PDF
What happens after the 30 days?
Before the hold ends, send an offer — a repayment offer, a token payment if nothing is left after priority bills, or confirmation that an adviser is setting up a plan. If you need more time and can show progress, ask for a further 30 days; the FCA guidance expects firms to consider it.
When a hold letter is not enough
If you already have a court claim, a statutory demand or an enforcement agent visit booked, deadlines run regardless of any hold. Go straight to urgent debt help.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
Do creditors have to agree to hold action?
Regulated lenders must suspend active recovery for a reasonable period when you tell them a repayment plan is being developed, and FCA guidance says that should generally be 30 days. Non-regulated creditors such as councils are not bound by that rule, though many will still agree a short hold if you ask.
Will interest keep adding up during a hold?
It can, unless the creditor agrees to freeze it. You can ask for both in the same letter, or send a freeze interest letter alongside it.
Does a hold letter stop court action?
It asks the creditor to pause, but it does not stop a court claim that has already been issued, and court deadlines still apply. Breathing Space, started through a debt adviser, gives legal protection from most enforcement for 60 days.