Token payments
Pay the people you owe a very small amount, regularly, while you can’t afford more. It could buy you time, if they agree to it.
Roughly how much do you owe?
It takes about 5 minutes, and there’s no obligation to go ahead.
- About 5 minutes
to answer a few questions online
- No obligation
nothing goes ahead unless you agree
- A partner debt firm
we pass your details to one
- A real person
an adviser can call to talk it through
At a glance
Where it applies: Anywhere in the UK.
- Where it applies
- Anywhere in the UK
- Type
- Informal: no court, no formal agreement
- Set up by
- You, with each creditor, or with an adviser’s help
- Creditors
- They don’t have to accept it
General information, not advice about your situation. Limits, fees and lengths change, and the rules differ across the UK.
Why people choose it
It’s flexible
No court and no paperwork, so you can change it as things change.
It shows you’re trying
Paying something and keeping in touch may help when you talk to the people you owe.
It can bridge a short gap
It may carry you through until your income changes.
How it works
Work out what you can afford
Start with your income and essential costs. What’s left is what you could offer.
Tell the people you owe
Write or call each one and offer a small regular amount. Keep a note of what you say.
Pay on time, every time
Stick to what you offered.
Keep an eye on it
Check back as your income changes, and use the time to look at a longer-term option.
Weigh it up
What could help, and what to know first.
What could help
- No court and no formal agreement.
- You can start straight away and change it later.
- It can suit a short dip in income.
What to weigh up
- Creditors don’t have to accept small payments.
- Interest and charges may keep building.
- A creditor may still take you to court.
- It may be recorded on your credit file, depending on the creditor.
Is it right for you?
It could suit you if
- Your situation is temporary, like a short spell of low income.
- You’re waiting for a change, like new work or a benefit decision.
It may not be right if
- You don’t expect your income to get better.
- A creditor has already started court action.
- Your debts are growing quickly.
Other routes to compare
No one option suits everyone. People often compare these.
Breathing space
A legal pause that gives you time to decide
Debt Management Plan
One monthly payment shared between the people you owe
Debt Relief Order
For people on a low income with few assets
Questions people ask
Will the people I owe accept token payments?
Not necessarily. Explaining your situation clearly, with a breakdown of your income and spending, may help.
Will the debt stop growing?
Not always. Interest and charges may carry on, depending on the creditor.
Can I be taken to court while I pay?
Yes. It isn’t a formal arrangement, so a creditor can still start court action.
How long can I do it for?
It’s meant as a short-term step. If you can’t afford more for a long time, look at a longer-term option.
Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. MoneyHelper
Want to talk it through?
Answer a few questions and an adviser from one of our partner debt firms can call you. There’s no obligation to go ahead.