Debt & Money · Managing Debt
How to Write a Holding Letter to Your Creditors
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What is a Holding Letter and When Should You Use One?
When you fall behind on credit cards, personal loans, or household bills, the sudden influx of automated letters, emails, and phone calls can be deeply overwhelming. A holding letter (sometimes called a debt respite letter) is a formal, written statement sent to your creditors to let them know that you are experiencing financial difficulties, are seeking professional debt advice, and need a temporary pause on collections.
You should use a holding letter if you cannot afford your minimum payments but want to prevent the creditor from taking immediate legal action or passing your account to a third-party bailiff. It demonstrates that you are acting in good faith and intend to address the debt once you have mapped out a realistic budget.
How a Holding Letter Stops Creditor Action
In the UK, the Financial Conduct Authority (FCA) rules state that creditors must treat customers in financial difficulty fairly and with forbearance.
When a creditor receives a formal holding letter, they are generally expected to:
- Pause active collection calls and letters for at least 30 days.
- Consider freezing interest and charges so your balance stops spiralling.
- Give you time to consult a free debt advice service like Citizens Advice, StepChange, or National Debtline.
Important
A holding letter does not write off your debt, but it halts the immediate stress so you can think clearly and take control.
Your Free Holding Letter Template
Copy, paste, and edit the template text below. Send it via email or post to your creditor's customer support or collections department.
Holding letter template
[Your Full Name] / [Your Address] / [Your Postcode] / [Your Account or Reference Number] [Creditor Name] / [Creditor Address] / [Date] Dear Sir/Madam, Re: Account Number [Insert Account Number] I am writing to inform you that I am currently experiencing financial difficulties and am unable to make my normal monthly payments to my account. I am taking active steps to resolve this situation and am currently putting together a budget and seeking free, professional debt advice. I intend to contact you again within 30 days with a realistic proposal of payment based on my actual disposable income. In the meantime, I kindly request that you: (1) hold any active collection action on my account for a period of 30 days; (2) freeze all interest and other charges so my financial situation does not worsen; (3) contact me only in writing at my address or via email rather than calling me on the phone. Thank you for your understanding and cooperation. Yours faithfully, [Your Signature] / [Your Printed Name]
Next Steps While Your Creditors are on Hold
Once you have sent your holding letters, the 30-day clock begins. Do not waste this time. Your next step is to accurately calculate your total household income against your priority outgoings. This will show you exactly how much money — if any — you have left over to offer your non-priority creditors.