Any person, organisation or government body that is owed money is a creditor, having provided goods and services to a separate entity. It is possible that interest will be charged on money, whether that’s on credit card payments, bank loans or something else.
If you fall behind on debt repayments, it’s likely that your creditors will take action to get you to settle your debts. They typically contact debtors by letter or phone, or they may visit you at home.
Letters are the main way creditors get in touch if you miss payments. Open these letters immediately
Contact can become more aggressive and threatening as time goes on
Accounts are often passed to the collection department after just a few reminders
You may be served with a default notice and then receive letters from debt collectors
Keep a record of all letters and other communication from creditors for future use
While creditors are allowed to contact you to collect unpaid debts, they must act reasonably and within the law when pursuing money for collection. Creditors have to take reasonable steps to ensure that they are treating their customers fairly when recovering any money that is owed.
The majority of creditors will operate within the law and will show understanding to their customer's circumstances but it may get to the point where you feel overwhelmed by the amount of contact you receive. In this instance, it could prove beneficial to seek independent and impartial debt advice to help you deal with your creditors.
Fresh Start UK has helped more than 12,000 people gain control of their finances and become debt-free. If you’re struggling with debt and finding it tough to keep up with your bills, speak to an advisor today.Get Started
As a leading Debt Management Company, Fresh Start UK deals with thousands of cases each year and is able to provide our clients with confidential advice to prevent debts from becoming insurmountable. Get in touch with us today to find out more.
Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.