Request to Freeze Interest and Charges
If you are in financial difficulty, asking your creditor to freeze interest and charges can stop your debt from growing while you make reduced payments. Under FCA rules, creditors must consider this request.
Why Request an Interest Freeze?
When you are only able to make minimum or reduced payments, interest charges can mean your debt barely reduces — or even grows. An interest freeze:
- Stops the debt growing while you make payments
- Ensures your payments reduce the actual balance
- Gives you a realistic path to clearing the debt
- Shows creditors you are serious about repaying
When to Request an Interest Freeze
An interest freeze request is appropriate when:
- You can only afford reduced payments
- The interest charges are more than or close to your payment amount
- You are setting up a debt management plan
- You have had a change in circumstances (job loss, illness, reduced hours)
What Creditors Must Do
Under FCA CONC rules:
- Creditors must consider freezing interest for customers in financial difficulty
- They should not add charges that make the debt harder to repay
- They must treat you fairly and with forbearance
- Refusing without good reason can be grounds for a complaint to the Financial Ombudsman
What to Expect
- Most creditors will freeze interest for 3–6 months initially
- They may review your situation at the end of the period
- Some may freeze interest for the duration of a payment plan
- You will usually need to provide income and expenditure details
Multiple Creditors
If you have debts with multiple creditors, you can send this letter to each one. It may be helpful to:
- 1Use our Budget Calculator to work out what you can afford
- 2Divide your available amount between creditors proportionally
- 3Send each creditor a letter explaining your situation and proposed payment
Frequently Asked Questions
Will my creditor definitely freeze interest?
While not guaranteed, FCA rules require creditors to consider your request fairly. Most major creditors will freeze interest for customers who can demonstrate financial difficulty and are making an effort to repay.
Will an interest freeze affect my credit file?
Your credit file may show that you are in a financial difficulty arrangement. However, this is typically less damaging than continued missed payments or a default.
How long does an interest freeze last?
Typically 3–6 months, though some creditors will extend it if your circumstances have not changed. Some debt management plans include interest freezes for the full duration of the plan.
Can I request this by phone instead?
Yes, you can request an interest freeze by phone. However, a letter creates a written record and gives you time to present your situation clearly. You might also find our Creditor Call Scripts helpful if you prefer to call.
Related Guides
Hardship Letter for Credit Card Debt
Free hardship letter template for credit card debt. Generate a professional letter requesting reduced payments, interest freeze, or a payment plan from your credit card provider.
Reduced Payment Request Letter
Free letter template to request reduced payments from a creditor, lender, or service provider during financial difficulty.
Sources & Further Reading
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