How to Ask for an Arrears Arrangement

The cheapest, fastest option available to most people — and the one most often skipped.

Calling the people you owe money to is the least appealing item on anyone's list. It is also, early on, the single most effective thing you can do.

Before you call

Have the arrears figure and the reinstatement figure. Know your account number. Work out what you can genuinely afford each month — not the number you wish you could manage, the one you will still be able to pay in four months' time. An arrangement you break is worse than one you never made.

Write down what changed and when: the layoff date, the illness, the contract that ended. You are not making excuses; you are giving them something specific to work with.

What to actually say

Lead with the fact, the cause and the plan. Something like: "I'm two payments behind. My hours were cut in April and I've started a new role that begins next month. I can pay X now and Y monthly on top of my regular payment until the arrears are clear."

That is concrete, and concrete is what gets escalated to someone who can approve things.

What to ask for by name

  • An arrears arrangement — spreading the missed payments over an agreed period.
  • A deferral — pausing payments briefly, with the interest added on.
  • An interest-only period — reducing the payment temporarily.
  • A term extension — lowering the ongoing payment by stretching the amortisation.

Asking by name signals you know these exist. They are not always available, and they are more available before a file has moved to a lender's legal department.

Get it in writing

Every time. Follow the call with a short email confirming what was agreed, and keep it. Verbal arrangements are the source of a great many disputes here — often through genuine misunderstanding rather than bad faith.

Two things not to do

Do not promise a figure you cannot sustain to get through an uncomfortable phone call. And do not go quiet if you miss the arrangement. A lender that hears "I'm going to be short this month, here is what I can do" is in a very different frame from one chasing silence.

Questions people ask

Who do I ask for?
Start with the number on your statement and ask for the department that handles arrears or collections. If the file has gone to their lawyers, ask who to deal with now.
Will asking make things worse?
Making contact does not accelerate anything. Silence is what tends to move files toward legal action.
What if they say no?
Ask why, ask what would change the answer, and get it in writing. Then move to the other options — refinancing, or selling while you still control the timing.

General information about the Alberta foreclosure process — not legal or financial advice, and nothing here guarantees an outcome. Every file is different.

Working with licensed Alberta real-estate professionals. Foreclosure Help Alberta is an education and referral service — we are not a law firm and we do not provide legal advice.