Many people I speak to have ignored their debts before they have resolved to contact us.
As a debt advisor, I think half of our clients wait for more than a year or more before they decide to book a personal appointment with a Debt Solution Company.
Many of the clients have reported that they do not know that there could be a debt solution available to resolve and manage their debt.
If you are struggling to deal with your debts, it can be difficult to open letters or pick up the phone. However, ignoring them is only going to make your financial matters more difficult in the long term.
Implications of Ignoring Creditor Letters and Telephone Calls
When you have missed the repayment on your credit cards and personal loans, it is recommended that you must not ignore letters, emails, phone calls and any other communication from your creditors. If you start ignoring communication from your creditors, it may become a bad habit until there could be legal action from your creditors or a possible bailiff debt recovery.
When you ignore letters and calls from your creditors, you will miss out on important paperwork, such as:
- Your creditor telling you they’ve passed your debt to a debt collection agency
- Default notices
- Court action-Attachment of Earning order, Bailiff Debt recovery, charging order and securing a court order to enforce the debt recovery.
- A statutory demand is the first step of a creditor trying to make you bankrupt
You have a strict deadline to reply to some of these letters if you want to avoid your creditor taking further action, so ignoring them is a bad idea.
You should also make sure your creditors have your current address. If you move house you might be tempted not to give your new address to your creditors. However, if you do not, you may find important letters like this go to your old address and not your own.
All this can send signals to your creditors that you do not pay your debts intentionally, which is not a good indicator to them.
What if I ignore creditor phone calls?
Some people find it quicker and easier to deal with creditors by phone, but for many people it can be stressful, upsetting or inconvenient.
A creditor cannot insist on you dealing with them by phone and you will not get into any trouble if you refuse.
When you prefer not to take phone calls from your creditors, it becomes even more important that you read your letters and emails as soon as you get them.
Again, we are reaffirming – do not give them a wrong indication that you do not pay your debts intentionally.
How can our debt advisors help you?
Can a debtor be forced to repay debts?
As there is FCA regulation for debt collection companies, if you cannot afford to pay your regular payments towards your debts you may need to consider making reduced payments.
For most consumer credit debts, if you decide to make reduced payments your creditors cannot force you to pay more than you can afford.
It is likely that if you ignore your creditors demand to pay debt back, your creditors are highly likely to begin enforcement of debt recovery action and ask you to bring your account up to date.
Making reduced payments will also affect your credit file and could lead to extra charges and interest.
If you are not sure, you must take consultation from a debt advisor. You may also contact a local debt charity (Citizen Advice Bureau Of) for suitable debt advice if you are struggling to pay at all and are in constant fear of debt recovery.
When you continue to make reduced payments, your account will eventually default , as you are no longer making the payments set out in the original agreement.
Before you consider making reduced payments to your debts, it is important you understand the consequences and think carefully if this is the right thing to do. We can help you with this.
We will provide you a detailed debt solution suitability report and will give you full details of your time and fee calculations in advance.
Debt Enforcement now, no way to avoid debt. Do not make the mistake of not paying your debts intentionally. You have a choice, decide to manage your debts and take advice for it.
There are some situations when your unsecured debts can be turned into priority debt via a court judgment. This means you may have to keep paying the debt at the rate the creditor decides or file for N245, even if you are making lower reduced payments to other debts.
There are two main reasons why you might need to treat a debt as a priority and pay it at a rate the creditor wants:
- The creditor has the power to take money from you at a rate they decide
Some creditors are able to take money from you because they have special legal powers allowing them to do this.
For example, some Government debts such as taxes, fines or council tax can be taken directly from your wages or benefits at a fixed rate.
Alternatively, if you do not pay a CCJ or decree the creditor may be able to ask the court to take money directly from you using an attachment of earnings or earnings arrestment.
This means even if you want to make reduced payments you may not be able to.
- The consequences of making reduced payments are so serious that they leave you with no real choice
Some creditors can take further action if you do not pay the amount they want.
Common examples of this are rent or mortgage arrears, where paying less than your property owner or Mortgage Company requires you to pay could lead to losing your home.
Similarly, not paying utilities such as energy and water bills could lead to you losing essential services, or not paying hire purchase or logbook loan debts could lead to you losing your car or other essential goods.
In all these cases, the creditor cannot take money directly from you, but the consequences of not paying them mean you may have no choice but to pay what they want.
So you see, when you do not pay your debts intentionally you have to face the consequences later and in a much harsher way than before.
How can we help?
If you are struggling to pay your debts, and you think you may need to make reduced payments, we can help you work out which are the priority debts that are most important to pay.
We can help you put together a suitable debt solution plan and work out how much you can afford to pay for all of your debts, and the best way to deal with them. We will also help you understand the consequences if you cannot pay what your creditors want.
Please call us for a free and confidential debt appointment on 0203 318 0990.
Acme Credit Consultants Ltd is regulated by Financial Conduct authority (FCA) to offer suitable debt advice ON YOUR DEBT PROBLEMS.