Finance glossary
Debt Write-Off
Also known as: Writing off debt
In simple terms
A debt write-off is when a creditor agrees to stop pursuing a debt and clears the balance — usually because you genuinely cannot pay and are unlikely to be able to in future.
On this page
What does write-off mean?
A debt write-off happens when a creditor agrees not to pursue a debt any further and cancels what you owe. It is different from an accounting “write-off”, where a lender removes the debt from its own books but may still chase you or sell it on.
It usually applies where your circumstances mean you cannot realistically pay, now or in the foreseeable future.
How a write-off works
You (or a debt adviser on your behalf) explain your situation and ask the creditor to write off the debt, often supporting the request with details of your income, expenditure and any vulnerability such as serious illness.
Creditors are not obliged to agree, but many will where recovery is unlikely. A formal solution such as bankruptcy, a DRO or an IVA can also lead to remaining debts being written off.
How could this affect me?
A successful write-off can lift a significant burden, but the account may still show on your credit file (for example as a default) for six years, affecting future borrowing.
Requesting a write-off is usually free through a debt charity — you should never pay a company that promises to “wipe” your debts for a fee.
Things to watch out for
- Creditors do not have to agree to write off a debt.
- A written-off account can still show on your credit file for six years.
- Beware firms charging fees to “wipe” debts — get free charity advice instead.
Know your rights
- Under FCA rules, lenders must treat customers in financial difficulty fairly and can, at their discretion, write off debts.
- Free help to request a write-off is available from StepChange, Citizens Advice and National Debtline.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Dealing with debt (opens in a new tab). Accessed 22 Aug 2026.