Token payment
Debt, arrears & collectionsA small, temporary payment made when you cannot afford the full amount.
Overview
Token payments are often part of short-term hardship arrangements.
They show willingness to pay while you seek longer-term help.
Why it matters
- It can prevent immediate escalation.
- It can buy time to arrange a realistic plan.
- It may still be recorded as an arrangement.
FAQs
Does a token payment protect my credit score?
It may still be recorded as an arrangement, but it can be better than missing payments.
How long can token payments last?
It depends on what you agree with the lender.
Related terms
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