A reader asked if starting to pay a defaulted account will help his credit score. The simple answer is No! But there are very good reasons why paying defaulted debts will improve your general credit situation, making it easier for you to get a loan, a mortgage or a credit card in future. That credit rating number isn't the only thing that matters! To start, it's good to know what your credit … [Read more...]
Dealing with creditors
If you can't make the standard monthly payments to your loans or credit cards, you need to talk to your creditors. Ignoring the problem or trying not to deal with creditors usually makes things worse, so don't be an ostrich!
Here are articles that looking at how you can approach your creditors and how they are likely to respond. If you don't feel you can manage this, then talk to a good Debt Charity such as National Debtline or StepChange - avoid firms that advertise as they are trying to make money from you.
In 2017, far too many people still have bailiff problems, despite the new bailiff rules, known as Taking Control of Goods, that were introduced three years ago in 2014. The news story in May 2017, Debt-ridden courier's suicide after bailiff visit prompts call for reforms is dreadful. No-one in should feel under so much pressure and this was for what were originally two small parking debts. And … [Read more...]
A few readers have asked recently about long term debt payment arrangements. What information do they have to give to a debt collector? Can they can be asked to pay more? etc. Let's look at three different cases: an arrangement with a creditor; what happens if you use a DMP firm; and what if the payment is to a CCJ. Arrangement with a creditor Mr A asks: I have had an arrangement … [Read more...]
A reader asked: "I had a joint loan, now sold off to a debt collector. I have been chased by numerous debt agencies for a few years now. The debt collectors have been chasing me solely and causing masses of stress when they should have been splitting the debt and chasing my ex partner as well. I think I have been very unfairly treated!" This is a very common problem. Lots of people think … [Read more...]
This is a guest post by Tax Aid, a charity that helps people on a low income with tax problems. If you can’t afford to pay a tax bill when it is due, you will often want to make a “time to pay” arrangement with the tax man. You may be asked questions that feel very personal, such as what your expenses are – this is because HMRC is more likely to make an arrangement with someone who they feel … [Read more...]
If its been four or five years since you stopped making payments to a debt and you haven't been making any payments, you may be wondering if your debt has got lost or the debt collector has forgotten about it. This article looks at what is likely to happen as in 2017 debt collectors are taking more people to cort than they used to. If you have been making payments, even very small ones, to an … [Read more...]
If you are very worried about your debts, you may be wondering how easy it would be to disappear and leave them all behind. Will your old records be linked with new ones on your credit records? Can your creditors find you if move, go abroad, change your name? Most of these sorts of ideas aren't very sensible - and you almost always have much better options! - but let's see what the problems … [Read more...]
A reader asked if he should offer a token payment to his debts, wondering if his creditors would ever accept it. The simple answer is that you should make token payments offers IF it is all you can afford AND you expect your situation to improve at some point. Let's look at how your creditors are likely to react and the questions people often ask. What is a token … [Read more...]
Creditors and debt collectors can phone you about your debts and ask you to pay the money you owe. But too many calls are unreasonable and can cross the line into harassment, which is illegal. If you are being phoned too often by debt collectors, there are practical steps you can take to stop it. How many is "too many"? In this news story, a man kept a record of over 700 calls from MBNA … [Read more...]
A reader asked if there is anything he can do to get some of his creditors to freeze interest on his debts and they have refused. Yes there is - use the template letters in this article. They aren't guaranteed to work, but it's worth a try! Why should a lender freeze interest? Regulators say that a creditor should treat a customer in financial difficulty fairly - they should listen to you if you … [Read more...]