The Ultimate Guide to Managing Debt: Take Control, One Step at a Time

Debt can be overwhelming—but you're not alone, and you're not powerless.

Whether it’s a temporary setback or a major life change like redundancy or illness, there are steps you can take to regain control of your finances. At Santchi, we believe everyone deserves accessible tools to navigate modern challenges. That’s why we’ve created Easyletters: to help people communicate effectively with creditors and manage difficult situations with confidence.


Why Act Now?

Ignoring debt won’t make it disappear. In fact, letting payments slide can lead to added interest, legal action, and serious stress. But there’s good news: creditors understand that life happens. In fact, the risk of non-payment is already factored into most interest rates. What matters is how you handle it.

Being honest, transparent, and proactive is key. The sooner you start communicating with creditors, the more options you'll have.


The Debt Management Process

Before You Start

📌 Tip: Always communicate in writing.

Phone calls can be useful, but letters leave a clear paper trail in case things turn sour. Begin by gathering all your financial details—your income, essential expenses, and outstanding debts. If you’ve already been contacted by a creditor, consider sending a holding letter using our basic debt template to explain your situation.


Step 1: Create a Financial Statement

📊 Budgeting is your foundation.

Use a financial statement template to calculate your total income, expenses, and available surplus. Classify debts into:


Our financial statement tool will guide you through this and even suggest a fair payment offer.



Step 2: Write to Your Creditors

✉️ Once your budget is set, send a letter to each creditor explaining your situation and include the financial statement. Clearly state your new, affordable offer. You can use our reduced payment template for this.


Step 3: Wait for a Response

⏳ Be prepared—they may accept or challenge your offer.

Some creditors might question your spending habits. If so, review your budget honestly and revise if needed. If your offer is fair and realistic, restate your position and remain calm.


Step 4: Update Your Payments

🔁 Set up a standing order or adjust your direct debit to reflect the new amount. Never miss a payment—consistency builds trust.


Step 5: Life Changes? Write Again

🔄 If things get better—or worse—recalculate your budget and send an updated offer using a debt review letter. Don’t overcommit. If your income increases, you’re not obligated to overpay.


Step 6: Ask for an Interest Freeze

❄️ After a couple of months of regular payments, write again and ask them to freeze interest. This can stop the debt from growing while you chip away at the balance. Use a debt freeze letter.


Step 7: Reviews

📅 Creditors might ask for regular updates (often every 6 months). Keep your financial statement current and send it over. Same review letter template applies.


Step 8: Your Debt May Be Outsourced

🏢 If your payment offer is particularly low, your debt may be passed to a third-party company. Don’t panic—just continue the process with them, following the same steps.


Need Extra Help?

If managing this yourself feels overwhelming, free, confidential advice is available from:


Final Thoughts

Debt isn’t a personal failure—it’s a challenge to be tackled with honesty and tools. At Santchi, we’ve built Easyletters to make the bureaucratic world more manageable. With just your browser, you can generate professional, structured letters tailored to your situation. Don’t struggle in silence—start managing your debt today, one letter at a time.