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This page offers people with existing debt problems tips on resloving
them. Debt consolidation loans are not the only way to resolve your
finances and even if it is the best way, you may not be approved
for one. Debt Management can be beneficial in other forms.Please
read this page to understand a little more about what you should
and should not do when facing financial difficulties.
Debt problems can be reduced. Please read some common tips below.
We advise you strongly to visit our other options page to get
more information from government organisations.
Communication
Communication is the key to successful negotiations with creditors.
Do not ignore their letters. Answer them promptly by letter
or by telephone. If you promise to contact someone by a certain
date, make sure you keep your promise and contact them even
if only to tell them when you are going to make a payment to
them or advise why there is a delay.
Mind
Your Manners
It never pays to get angry with anyone, even when you feel
justified in doing so. Always be polite and courteous even in
the face of being treated rudely. It takes the wind out of their
sails. If someone is acting negatively with you and you react
negatively, it always makes the situation worse. As a debtor
your objective is to persuade someone to be sympathetic to your
circumstances.
Don't
Take Any Nonsense
Don't take any nonsense from anyone. 100 years ago we used
to have debtors prisons in the UK. If this was the case now
we would not have enough prisons to house even a small proportion
of debtors. The worst that can happen is that a creditor will
obtain a judgment against you and take money from you on an
involuntary basis, which you can avoid through several ways
explained in this website. If you are being harassed by a creditor
or a company employed by a creditor take the name of the individual
and report them.
Get
It In Writing
Get it in writing. Always create a paper trail. This starts
with your records such as invoices, credit card statements etc.
Every telephone call, letter written/received and offers made.
lways make a note of the date and time and to whom you have
spoken and if necessary confirm all conversations or offers
in writing.
Don't
Bluff
Don't
threaten creditors with bankruptcy
Most creditors and their agents hear these types of threats
every day. It is a form of stonewalling that hinders negotiations.
Creditors are likely to become more aggressive and their standard
reply is "go ahead and file". There is a way to do this indirectly
in the context of portraying adverse financial circumstances,
with an inference that bankruptcy is a possible alternative
in the event that the creditor does not accept your offer.
Make
your offer as brief and precise as possible
If
you get into trouble
If you get into trouble after you have negotiated an offer
and you can't adhere to the arrangement, contact the creditor
in advance. Attempt to send a portion of the funds you promised
with a proposal to make up the balance, or renegotiate the entire
proposal. Do not wait to contact the creditor until after you
have missed a deadline for payment.
Protect
Yourself
If you receive Court or official papers, protect yourself.
Make sure you know how much time you have until a legal response
is required to be filed with the Court. This is usually set
out on the Court or official papers. Consult with either a Citizens
Advice Bureau or similar organisation or insolvency practitioner/solicitor
regarding your rights or the means to resolve the claim without
going to Court. If you contact the creditors or their agent
and start negotiating the claim, make sure the response deadline
is postponed to a date that you can keep to. This postponement
must then be confirmed in writing.
Be
Realistic
Always be realistic with your offer. Only offer what you can
actually afford. Ensure you complete your statement of means
as accurately as possible, not forgetting expenses such as school
expenses, child minding, cigarettes, TV licence etc. Do not
however insult your creditor by over estimating your expenses,
such as entertainment, dining out etc. The majority of creditors
are fair and they will expect realistic payments within your
budget.
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