Payment plan
Debt, arrears & collectionsAn agreed schedule to repay a debt over time, often at a reduced amount.
Overview
Payment plans can be set up with lenders to manage arrears or hardship.
They may be recorded on your credit file.
Why it matters
- It can help you stay on track and avoid further action.
- It can affect your credit profile while active.
- It can prevent a debt from escalating.
FAQs
Does a payment plan affect my credit score?
It can. Lenders may see it as a sign of financial difficulty.
Can I change a payment plan later?
You may be able to renegotiate, but it depends on the lender.
Related terms
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