There are lots of different factors to consider when giving the best debt advice, including how much you owe and to how many creditors, whether you own a home, what type of debt it is (eg. secured or unsecured) and much more.
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
Debt Advice 
The debt solutions that are
available include:
available include:
Debt Collection Process
If you fall behind in the payment of debt to your creditors then they will probably start a debt collection process. As soon as this happens you should get in touch with us for free debt advice, we should be able to help you to come to an arrangement with your creditors to prevent the situation getting out of hand.The debt collection process that your creditors are going to be able to take will depend on what sort of debt you have, whether it is secured or unsecured. The most important kinds of debt to pay are secured debt, because you could lose what it is secured against if you do not. For more information see our section on Types of Debt.
For unsecured debt there are a number of steps that your creditors can take when you are in arrears. These will now be explained. At any stage, you can contact us for free debt advice and we should be able to come up with a solution to your debt problems.
CALLS AND LETTERS
Calls and Letters from Creditors
The first thing that you are likely to face from your creditors are phone calls and letters in which they will let you know that you are in arrears and that they demand payment.
Although these can be very worrying it is best not to ignore them as this could cause your creditors to believe that you are going to stop paying your debts to them altogether and this could lead them to take more serious action faster.
You should be aware of your rights however, which have been set down by the Office of Fair Trading (OFT). These set out guidelines for the creditors to follow, and if they break these rules then you can make a complaint and they may have their credit license revoked.
The first thing that you are likely to face from your creditors are phone calls and letters in which they will let you know that you are in arrears and that they demand payment.
Although these can be very worrying it is best not to ignore them as this could cause your creditors to believe that you are going to stop paying your debts to them altogether and this could lead them to take more serious action faster.
You should be aware of your rights however, which have been set down by the Office of Fair Trading (OFT). These set out guidelines for the creditors to follow, and if they break these rules then you can make a complaint and they may have their credit license revoked.
YOUR RIGHTS
What are Your Rights?
When creditors are pursuing you for what you owe them, there are certain guidelines that they have to follow. If they don't, you can complain to the Office of Fair Trading. These guidelines include:
They cannot contact you at work without permission,
They cannot discuss your debt with family members or employers,
They cannot refused to deal with advice agencies such as this one (DebtAdvice.net),
They cannot add unreasonable charges (they should all be laid out in your original agreement),
They cannot pretend to have legal powers they do not have,
They cannot pressure you to borrow more in order to pay off your debts with them.
If you think that your creditors may have broken any of these rules, get in touch with us and we can advise you on whether you have a case or not. We will also be able to give you additional free debt advice.
When creditors are pursuing you for what you owe them, there are certain guidelines that they have to follow. If they don't, you can complain to the Office of Fair Trading. These guidelines include:
They cannot contact you at work without permission, They cannot discuss your debt with family members or employers, They cannot refused to deal with advice agencies such as this one (DebtAdvice.net), They cannot add unreasonable charges (they should all be laid out in your original agreement), They cannot pretend to have legal powers they do not have, They cannot pressure you to borrow more in order to pay off your debts with them.If you think that your creditors may have broken any of these rules, get in touch with us and we can advise you on whether you have a case or not. We will also be able to give you additional free debt advice.
CONTACT US
Get in Touch
If you are facing a debt collection process, or you know that you are not going to be able to continue paying for your debt at the current rate, then get advice on debt for free at DebtAdvice.net. All of the information that you provide us with with will be kept completely confidential and private.
If you are facing a debt collection process, or you know that you are not going to be able to continue paying for your debt at the current rate, then get advice on debt for free at DebtAdvice.net. All of the information that you provide us with with will be kept completely confidential and private.
DEFAULT NOTICE
Default Notice
If you miss between 3 and 6 payments to a creditor they are likely to submit a Default Notice. This is a formal letter which informs you that if you do not quickly pay off your arrears then your account will be considered to be in “default”.
You will have 14 days in which to pay off the debt. If you are unable to afford to do so then you are strongly advised to get in touch with us for debt advise as soon as possible. We should be able to come up with a debt solution that will avoid further problems.
If you miss between 3 and 6 payments to a creditor they are likely to submit a Default Notice. This is a formal letter which informs you that if you do not quickly pay off your arrears then your account will be considered to be in “default”.
You will have 14 days in which to pay off the debt. If you are unable to afford to do so then you are strongly advised to get in touch with us for debt advise as soon as possible. We should be able to come up with a debt solution that will avoid further problems.
CREDITOR ACTION
What Action can Creditors Take?
If you cannot pay and do not set up any further arrangement then your creditor can sell the debt to a debt collection agency (see our dedicated page for more information). They can also start court proceedings, which will usually involve their trying to get a county court judgement (CCJ) against you (for more information see the section on Court Action).
If you owe them over £750 they can also try to force you to become bankrupt, but this is rare as they would have to pay the costs. In this case though, or with court action, it is possible that bailiffs will be hired to take away your possessions in order to pay off the debt that you owe.
All of this can be extremely stressful but there is always a solution to debt problems, so get in touch for free debt advice.
If you cannot pay and do not set up any further arrangement then your creditor can sell the debt to a debt collection agency (see our dedicated page for more information). They can also start court proceedings, which will usually involve their trying to get a county court judgement (CCJ) against you (for more information see the section on Court Action).
If you owe them over £750 they can also try to force you to become bankrupt, but this is rare as they would have to pay the costs. In this case though, or with court action, it is possible that bailiffs will be hired to take away your possessions in order to pay off the debt that you owe.All of this can be extremely stressful but there is always a solution to debt problems, so get in touch for free debt advice.