Home » Debt Restructuring Advice

If your financial position is poor, it may be possible to get help from your creditors. Restructuring debt is when you defer payments due to a supplier for an agreed amount of time. In some cases this can be for a long time. The possibilities include:

• Consolidating several debts into a single debt with a schedule of regular monthly payments
• Freezing interest payable on the debts
• Offering some sort of security, eg a mortgage to secure payment of the debt
• Committing to ordering exclusively from suppliers that agree to the restructure

The approach to your creditors

• Look at it from their point of view and show them why it is in their interests to agree to restructuring. The promise of future business or the likelihood of avoiding a bad debt could be enough.
• Your proposals should be well prepared.
• Your proposals must be realistic since your creditors have to believe this will solve the problem. It may not be possible to go back later and ask for further concessions.