All About Debts

Dealing with Creditors

Debt Help www.RemoveDebt.org

Debt Help allows you to pay one lower monthly payment to all of your unsecured credit companies, day dealings with your creditors. Your creditors are then able to see regular monthly payments being paid to them by our company. We find they will be happy to deal directly with us to negotiate the freezing of charges and interest on your accounts. Once your payments are in place Debt Advice Online undertake regular reviews of your account so that you may increase payments to your Debt Help plan and pay back your debts quicker.

Counseling Debt Negotiating with priority creditors

Consolidation Consumer Debt If you are in debt, it is important to keep in contact with the people you owe money to (your creditors). If they are unaware you are having financial difficulties, they will assume you don't want to pay and start taking action to have their debts repaid. It is rarely too late to start negotiating and most creditors will appreciate your contacting them.

Debt Settlement There are two types of creditors: priority creditors and non-priority creditors. Priority creditors are those who have the strongest remedies for ensuring they are paid (enforcing the debt) such as making you homeless, disconnecting your gas or electricity supply, or, in some cases, having you imprisoned. Although non- priority creditors can take court action to recover their debts, you cannot be imprisoned for non-payment. For information on dealing with non-priority creditors, see fact sheet

Now you need to write letters to your priority creditors to tell them that you are having problems paying the debt you owe them but are sorting it out. You should include the reasons for your financial difficulties and your payment offer. Even if ita s a token á1 offer, it shows you are serious about dealing with your debt. It will increase the chances of the creditor being receptive to your debt repayment proposal.

Debt Free The following rules will help you in your negotiations:-

Your Debts and Debt Collectors You are responsible for your debts. If you fall behind in paying your creditors or an error is made on your account, you may be contacted by a "debt collector." A debt collector is any person, other than the creditor, who regularly collects debts owed to others. This includes lawyers who collect debts on a regular basis. You have the right to be treated fairly by debt collectors.

Consolidation Debt Service .don't ignore the problem. It won't go away;

Company Consolidation Debt .contact your creditors as early as possible and explain why you are in debt;

Consolidation Debt Online .if the first person you speak to is unhelpful, ask to speak to someone more senior who may be more willing to agree to your proposals;

Consolidation Debt Free .work out your income and expenses so that you know how much you have to offer to your creditors. For information on how to do this, see fact sheet Basic debt advice

Debt Problem .make sure you tackle your priority creditors first (see below for more information);

Credit Debt .don't borrow money to repay your debts. This is likely to increase your debt and may put your home at risk. If you are unsure about what to do, contact your local CAB.

Advice Debt .don't ignore creditors' letters or phone calls. Always answer letters and don't give up trying to make an arrangement even if a creditor seems difficult;

Card Credit Debt Eliminate .keep copies of all letters and make a note of all telephone calls or meetings, including the person's name and what was agreed;

Debt Recovery .always reply to court letters within the time limit and take
advice if you're unsure how to complete court forms.

Counseling Credit Debt www.RemoveDebt.org

Consolidation Debt Uk

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