Write off the debt

Key facts

How much debt must I owe? There is no minimum or maximum level of debt.

What type of debt? You would usually use this option for credit debts.

How long will it last? Debts would be cleared at the time that they are written off.

How it works

See our fact sheet:

Write off debt.

It may be possible to ask your creditors to write off the debts if you have no available income to make any payments and have no savings or assets.

You need to convince the creditors that your circumstances are unlikely to improve in the future.

Your circumstances may need to be exceptional; for example, you have a severe illness.

You need to convince your creditors that it is not worthwhile trying to collect the debt.

We have a sample letter that you can use to ask your creditors to write off your debts. If they do not agree at first, we have a further sample letter that you can use to ask them to reconsider their decision.

Advantages

  • It relieves stress and anxiety where you are in an exceptionally difficult situation.
  • It allows you to make a fresh start.
  • Your creditors accept that it is not appropriate to take any further action because of your situation.

Disadvantages

  • Creditors do not normally agree to write off the debt.
  • It will still show up on your credit file and affect your ability to get credit in the future.
  • Some creditors choose not to pursue the debt but do not put this in writing.
  • There is no guarantee they won’t chase you for the debt in the future.
  • Some creditors may refuse whilst others agree.