Talking to Creditors

A creditor is any company which supplies loans, credit or services in advance. Creditors charge for their services through fees, charges and interest. For example, a creditor could be any business (ranging) from a bank or other financial institution which has loaned you money to the local plumber if you can’t pay for work they have completed.

Important Tips

When you contact a creditor about your debt, we suggest you:

• Have pen and paper to record what is said
• Ask to talk to a specialist ‘hardship person’
• Write down the name of the person you are talking with
• Always write down the date and the contents of the discussion
• Have all the details of the situation ready (dates, account numbers, payments etc)
• Be open about your financial difficulties.

What to tell them:

• You need the creditor’s assistance.
• State what you need. This may include more time to pay, a delay until you see a financial counsellor, smaller repayments or a hold on interest.
• Work out your limit. Offer an amount you can definitely afford (leave some wriggle room to negotiate and never agree to more than your upper limit).
• Try to arrange payment dates to suit your income cycle or Centrelink payment dates and be clear on how payments are to be made.
• You could also ask for smaller repayments for a limited period of time and then review the situation.

If the creditor refuses to negotiate:

• Make your request in writing and ask for a written reply. You can use this Financial Rights Legal Centre sample letter to help you get started.
• Keep a copy of any letters sent or received.
• Ask them to wait until you have seen your financial counsellor.
• Contact an Anglicare Victoria financial counsellor on 1800 809 722 and tell us what happened.