70. HOW TO SET UP A REPAYMENT PLAN - Jack’s Tenant Empowerment - Empowering Social Tenants - Jack Lookman Limited - Olayinka Carew

70. HOW TO SET UP A REPAYMENT PLAN

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Setting up a repayment plan is one of the most sensible things you can do if you've fallen behind on your rent. It converts a rising problem into an organised process. Instead of facing a seemingly overwhelming lump sum, you divide it into manageable chunks.

The first step is determining exactly how much you owe. This may be apparent, yet many tenants rely on preliminary estimations. Requesting a full rent statement from your landlord provides you a precise amount and eliminates uncertainties.

Once you have that, the next step is assessing what you can realistically afford. This is where honesty is critical. Overcommitting can cause more harm than good. A repayment plan only works if you can stick to it consistently. That means looking at your income, essential bills, and day to day living costs, then identifying what is left.

The plan itself usually involves paying your normal rent plus an additional amount toward the arrears. The extra payment does not have to be large. What matters is consistency. Even a small amount, paid regularly, shows commitment and gradually reduces the debt.

When proposing a plan to your landlord, present it clearly. Explain how you arrived at the amount and why it is sustainable for you. This is where a simple budget can strengthen your case. It shows that your proposal is based on real figures, not guesswork.

Many landlords are open to negotiation at this stage. They may suggest adjustments or agree to your proposal as it is. The key is reaching an agreement that both sides understand and accept. Once agreed, it is important to keep a record, whether that is in writing or through confirmed communication.

Automation can make a significant difference here. Setting up a standing order for your payments reduces the risk of missing them. It also builds a routine, which is especially helpful if you are managing multiple financial pressures.

If you are receiving Universal Credit and struggling to manage payments, you might also consider requesting an Alternative Payment Arrangement. This can ensure your ongoing rent is paid directly to your landlord, allowing you to focus on clearing the arrears separately.

There may be situations where your financial circumstances improve. If that happens, increasing your repayment amount can help clear the debt faster. On the other hand, if your situation worsens, it is important to revisit the plan rather than letting payments lapse.