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Home>Glossary>Arrangement to pay

Arrangement to pay

Debt, arrears & collections
An agreement with a lender to pay less than the original amount for a period of time.

Overview

Arrangements to pay are usually reported to credit agencies.

They can be helpful in the short term but may affect future applications.

Why it matters

  • It signals financial difficulty to lenders.
  • It can reduce your score while it is active.
  • It may help you avoid default if managed well.

FAQs

Is an arrangement to pay better than default?

Often yes, but both can affect your credit profile.

Will it stay on my report?

Yes. It is typically recorded on your credit file.

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