A payment arrangement — sometimes called a payment plan or instalment arrangement — is a formal agreement between you and Merion (on behalf of the original creditor) to repay an outstanding debt in regular instalments over an agreed period, rather than in a single lump sum.
If you cannot pay in full right now, proposing a payment arrangement is almost always the right step. It demonstrates good faith, prevents further escalation, and gives you a clear, manageable path to resolving the account.
What to include when proposing an arrangement
A strong, credible proposal includes:
- Your name and reference number — this lets us locate your account immediately.
- Your current income — gross and net, and how often you are paid (weekly, fortnightly, monthly).
- Your regular expenses — rent or mortgage, utilities, groceries, insurance, transport, other debt repayments. Be specific and realistic.
- Other debts you are managing — if you have multiple creditors, list them. This helps us understand your overall position and propose something sustainable.
- What you can realistically offer — state a specific amount (for example, $50 per week or $200 per fortnight). Propose something you can genuinely maintain, not the highest amount you think sounds good.
What Merion considers
When we review a payment arrangement proposal, we look at:
- Whether the proposed instalments are consistent with the financial information provided
- Whether the arrangement will repay the debt within a reasonable timeframe
- Whether you have demonstrated a genuine intent to repay
We do not expect perfection — we expect honesty. An arrangement based on accurate information is far more likely to succeed than one based on what you think we want to hear.
How an arrangement is confirmed
Once we agree on terms, you will receive written confirmation of the arrangement — including the instalment amount, frequency, and the payment method. Keep this confirmation. It is your record of what was agreed.
If your circumstances change
If something changes — you lose income, an unexpected expense arises, or you experience a medical event — contact us as soon as possible. Arrangements can often be adjusted. See our article on what to do if your circumstances change.
To propose an arrangement now, use the form at merion.com.au/payment-arrangement/, or call us directly. If you would like free, independent help before you propose an arrangement, contact the National Debt Helpline on 1800 007 007.
Was this article helpful, or still not sure? Our team is happy to talk it through.