How does debt write-off work?
Debt write-off is a process where your creditors agree to cancel the remaining balance of your debts in special circumstances. Some of these scenarios can include medical write-off (if illness has made managing your debts difficult) or debts that have been built up as a result of economic abuse.
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Initial assessment
We’ll review your financial and personal situation to work out if a debt write-off is a viable option to explore.
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Referral to our specialist team
If we believe it’s a possibility, we’ll refer you to our expert team for further support.
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Gathering your documents
We may ask you to provide documents like:
- A detailed budget (we’ll assist with this)
- A letter of authority (so we can speak to your creditors on your behalf)
- Medical records (if applicable)
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Contacting your creditors
Our team will contact your creditors, explaining your circumstances and requesting the debt write-off on your behalf.
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The final outcome
- If your request’s approved, your creditors will confirm the decision and may update your credit file to show the debt’s been cleared.
- If it’s rejected, we’ll speak with your creditors to understand why the decision was made and what other information could be provided for them to reconsider this. If they’re still rejecting the request, we’ll get to work exploring alternative debt solutions for you.
Am I eligible for a debt write-off?
A debt write-off may be an option for you in certain circumstances. Here are some examples of when it could be considered:
Medical write-off
If an illness or medical condition has made it difficult to manage your debts.
Inability to repay debts
If your financial situation means you are unable to pay back your debts due to a significant reason, such as a serious mental health issue.
Debts from economic abuse
If your debts were built up due to economic abuse
We can help you explore whether a debt write-off is a suitable option for your circumstances and guide you through the process.
What are the pros and cons of a debt write-off?
Benefits of a debt write-off
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Debt relief
You’re no longer responsible for the remaining balance. -
Focus on essential expenses
With the debts written off, you can redirect your income toward necessary expenses and start to rebuild your finances. -
Credit file update
Creditors may mark the debt as cleared or partially settled/satisfied, although this isn’t guaranteed. -
No more payments
Once approved, you don’t have to make any further payments toward the written-off debt.
Things to consider
- Your credit file may show that debts were written off, which can lower your credit score.
- Creditors may reject the request for a write-off, meaning you’ll need to explore alternative solutions.
- Some creditors may hesitate to offer you credit after seeing a history of debt write-offs, however a Notice of Correction can be added to your report to provide creditors with some context.
- You may need to provide detailed personal, medical, or financial records.
- Creditors can take time to review your circumstances and make a decision.
What debts can be included in a debt write-off?
A debt write-off may apply to unsecured and non-priority debts, such as
- Credit card debt
- Personal loans
- Overdrafts
- Store card debts
- Payday loans
You won’t be able to include secured debts like;
- Mortgages
- Rent arrears
- Child maintenance
These debts will need to be paid directly and we’ll help you manage them in your budget.
Why Choose Us?
Our expert team is here to guide you through the debt write-off process, helping you work out if it’s the right solution for your circumstances and supporting you every step of the way.
- 100,000+ people received free, confidential debt advice last year
- £4m In 2024, we helped to write off over £4m worth of debt overall
Frequently asked questions
We’ve put together a list of frequently asked questions about Debt write-off and we hope your query can be answered here.
Do I need to pay anything for the service?
What if my creditors refuse the write-off?
How long does the debt write-off process take?
Let’s make your debt more affordable
You’re just two steps away from taking back control of your finances and freeing up more money for you and your family.
Getting advice has no impact on your credit score.
Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly
Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly