No money to pay creditors - letter by Citizens Advice

Updated 17 October 2025

This template is a letter for an individual to send to a creditor, such as a bank, when they are unable to make their monthly payments. It explains the reason for the payment difficulty, provides a financial statement, and requests a hold on action and a freeze on interest and charges to prevent the debt from increasing.

CACitizens Advice

No money to pay creditors - letter

Sam Hoolin

8 Park Avenue
Arlton AL1 4CA

[email protected]
01632 960001

Giltham City Bank

24 Station Road
Giltham GT16 3LP

12 September 2025

Your reference: LL/ANO/Reminder1

To whom it may concern,

Account name: Sam K Hoolin

Account number: 12345678

I am sorry that I am unable to keep up my monthly payments to your company.

I'm sick and unable to work. I've claimed benefits and I'm waiting to hear the outcome of my claim. My situation is unlikely to improve for at least 3 months.

I enclose a copy of my financial statement. This shows income and expenses for me. You will see from this information that I am unable to make any offer of payment at the moment.

I am making every effort to increase my income and will contact you again as soon as my financial circumstances improve.

In the meantime, it would be helpful if you could hold action on my account and agree to freeze interest and other charges to stop my debt increasing. If you are unable to agree to this, please explain your reasons.

Thank you for your help and I look forward to hearing from you.

Yours faithfully,

Sam Hoolin

About this template

What is this template?

No money to pay creditors - letter by Citizens Advice is a free, ready-to-use Banking and finance template you can open, customize, and download on GitLaw. It gives you a professionally structured starting point, so you never have to draft from a blank page. The wording is plain and modern, organized into clear sections that are easy to read, edit, and adapt to your own situation before you share or sign it.

When should you use it?

Reach for this Banking and finance template whenever you need a reliable agreement quickly and want to be sure the essentials are covered. It suits individuals, freelancers, startups, and established businesses alike. Instead of paying for a document drafted from scratch, you can start here, tailor the details to your arrangement, and have a polished draft ready in minutes. Always review the final wording against the laws that apply where you live or do business.

What's typically included?

A well-drafted Banking and finance usually sets out the parties involved, the scope of the agreement, and each side's rights and responsibilities. Expect sections covering key terms and definitions, how long the agreement lasts, how it can be ended, and what happens if something goes wrong. This template brings those building blocks together in a sensible order, so you can focus on the specifics rather than worrying about what to include. Open it to read the full document, then sign up to edit, negotiate, and e-sign it directly in GitLaw.

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