Setting a payment plan the customer can actually keep
An affordable plan is the single most powerful tool in hardship handling — it turns an unpayable lump into a manageable habit.
What this scenario teaches
- Start from the customer's capacity, not the balance owed
- Build a plan that leaves essentials intact
- Choose amounts and frequencies that fit their cash flow
- Confirm the arrangement clearly and in writing
- Set a review so the plan can flex if life changes
6 min read
The scenario
A customer in difficulty is willing to pay something but cannot clear the balance any time soon. Your task is to convert that willingness into a plan that holds — one they can keep paying through ordinary ups and downs, not one that looks impressive on paper and breaks within a month.
Set it well and you have a reliable stream and a grateful customer. Set it badly and you are back at square one, having burned both time and goodwill.
What's really going on
The most common mistake in hardship is anchoring the plan to what is owed rather than to what the person can afford. A figure pulled from the balance, or nudged upward by pressure, ignores the customer's actual cash flow — and a plan that ignores cash flow fails. When it fails, everyone resets to zero, often worse off.
An affordable plan flips the order: it starts with what is genuinely spare after essentials, sets the instalment comfortably within that, and matches the timing to when money lands. Smaller and certain beats larger and fragile, every time.
Your options
- Work from capacity. Ask broadly what is left after essentials and size the instalment below it.
- Match the rhythm. Align payments to pay cycles — weekly, fortnightly, or pension day.
- Start gentle. A lower opening amount that can rise later beats an ambitious one that stalls.
- Refer if needed. If the figures will not balance, the National Debt Helpline (1800 007 007) can help them budget across everything.
Recommended approach
Frame it as a joint problem to solve: "Let's land on an amount you can pay without fail, even in a tight week." Establish the rough shape of their finances, propose an instalment comfortably within capacity, and set the frequency to their income. Confirm the amount, dates, and what happens if a payment is missed — all in plain writing.
Then schedule a review so the plan can grow or ease as circumstances change. The step-by-step of negotiating arrangements sits within the Academy library if you want the detail.
What to avoid
Do not back-solve the instalment from the balance or a deadline, and do not let pressure push the figure above what the person can afford. Avoid leaving terms vague — ambiguity breeds broken plans and disputes. And do not treat the plan as fixed forever; a refusal to revisit it when life changes simply guarantees it eventually fails.
The lesson
- Start from capacity, not the balance — affordability comes first.
- Match instalment timing to the customer's pay cycle.
- Smaller and certain beats larger and fragile.
- Confirm everything in writing and schedule a review.
Frequently asked questions
How do I work out an affordable amount?
Ask broadly what is left after essentials like rent, utilities, and food, then set the instalment comfortably below that figure. The plan should survive a tight week.
What payment frequency works best?
Whichever matches their income. Aligning payments to pay day, a fortnightly cycle, or pension day makes it far likelier each instalment is actually there.
What if even a small plan won't balance?
Consider a temporary pause and refer to the National Debt Helpline (1800 007 007) so they can budget across all their commitments before committing to anything.
Real situations, the right call
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