Notice of defaults: everything you need to know
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Do you know why it’s important to read letters and emails from creditors?
Over the years, we’ve spoken to thousands of people who were having trouble repaying their debts. We know the fear of facing letters, emails and phone calls from creditors chasing you for money can be very real, and it can even interfere with your quality of life.
However, we also know that the problem won’t get better if you ignore it. Fortunately, you never have to face unmanageable debts alone – there is so much help out there. No debt problem, no matter how bad it feels, is unsolvable.
In today’s blog, we’re going to look at why it’s so important not to ignore creditor contact and how you can get help tackling the problem.
The problem won’t just go away
Nothing will get better if you simply ignore the companies asking you to pay them. In fact, the sooner you get in touch with your creditors and explain your situation the better.
If you ignore contact with no explanation as to why you’ve stopped making your payments, you are likely to end up with defaults. Creditors will issue a default if they believe the contractual agreement between you and them to be broken. You normally have to miss between three to six payments for a default to be issued. It’s likely that your creditors will add additional charges as well if you’ve stopped paying and not made an arrangement with them. Our blog on what a default on a debt means, will give you more information.
If you continue to ignore the situation, your creditors might decide to take legal action. This can result in you getting a County Court Judgement, having money taken from your wages or benefits and even receiving visits from bailiffs.
You need to know how much you owe and what stage your debts are at
It’s important to read emails and letters from your creditors because you need to know how much you owe and what stage the debt is at.
Although it may be the last thing you feel like doing, it’s a good idea to open any letters that come your way, or that you haven’t opened yet, and start organising them all. Once you know the facts about the position you’re in, you’ll be able to start putting a plan in place to deal with your debts once and for all.
If there’s an email or letter that you haven’t opened containing urgent information, at least you’ll be able to respond to it before the situation gets any worse. For example, your creditor might have sent you a default notice or a County Court Claim form that you need to respond to.
You’re not alone with your debts
Once you’ve opened all those letters and emails, you’re not going to be left alone to struggle with your debts.
There’s professional debt help available no matter what stage your debts are at. Whether you’re just starting to miss payments or you’re being threatened with legal action, the sooner you talk to someone about it the better.
When you come to speak to someone, they will need to know the details of your situation. This is another reason why you should open letters and emails.
If you feel like you’re drowning in dates and figures, you might need a little help to see exactly where you stand with your finances. Our Money Smart report is a very useful tool that will simply and clearly show you where your money is going each month and the debt solutions you can consider. Click below to receive your free, personalised report.
If you were to start a debt solution via Debt Advisory Centre we will take over most contact from your creditors relieving you of the stress. If you’d like to speak to one of our trained advisors today, you can use one of the options on the left of this page.
There is also free and impartial advice available from the Money Advice Service.
by Christine WalshBack to blog home