Debt advice - Dealing with Debt

Posted by Amy Flower in Dealing with Debt on 23 October 2015 - Amy is a Senior Credit Analyst at checkmyfile

The most important debt advice you can probably have is that the advice does not need to be paid for, there are organisations available that can give you free advice about handling your debts or the rescheduling of your debts. Stepchange.org, Citizens Advice Bureau (CAB), Money Advice Service (MA) and the government’s National Debt Line all provide free, non-judgemental advice and guidance on how to take control of your debts, approaching your creditors and how to work out what you can afford to repay.

The organisations can provide you with an income and expenditure form that will help you to detail all of your finances and provide a reasonable view of what you need to live on and what, if any, money there is left to divide between your creditors. You will also be given advice about the different types of debts and which creditors are considered to be a priority creditor over non-priority creditor.

Your creditors need to be treated equally and be informed of your current financial situation if any changes occur whilst you are making your offers or repayment or if you are already in an agreed repayment plan.

Ignoring your debts and the lenders involved can result in the creditor/s taking recourse to the courts for legal recognition of your debt in the form of a County Court Judgment (CCJ). This gives the creditors more ways of enforcing the debt is repaid by using any of the following:

Oral examination – where the debtor has to swear under oath the status of the assets and liabilities.

Attachment of Earnings Order – employer deducts an amount from the earnings before debtor gets paid.

Garnishee Order – an order to remove funds from the debtor’s bank account as and when they become available.

Charging Order – an order placed over any large assets so the debtor cannot sell them off without the proceeds going to clear the outstanding debts.

Writ of Fi. Fa. – having bailiffs to seize and sell the goods to raise funds.

The pressure applied by the threat of court action typically results in a debtor paying the debt before further action is taken – court is usually a last resort for lenders who will often want to find other ways of retrieving the debt without having to take court action.

The debt advice organisations can clearly advise of the best way forward in trying to take control of your debts. Ignoring your debts will only make your situation worse so be honest with your creditors about your difficulties you are experiencing and try and work out a suitable solution. Leaving the debt to fester will only be worse in the long run, as well as causing you more stress if it is taken further by the lenders concerned – so always try to move forward in a positive way and speak to one of the free organisations that have been set up to help people in exactly your situation.

Take Control of Your Finances – Check Your Credit History

30 Day Free Trial, No Obligation

Does a Debt Management Plan Affect Your Credit Rating?

If you’re feeling increasingly overwhelmed by debt and aren’t sure what steps you can take next, the most important thing to remember is that there is plenty of help available and different solutions designed to get your finances back on the straight and narrow.

Published on 18 Jun 2019 by Kevin Pearce

Full Article

Late Payments & Defaults: What's The Difference?

When a lender checks your Credit Report, one of the most important elements it considers is payment history as reported to the Credit Reference Agencies. On a perfect applicant’s Credit Report, every credit account would be reported with a clean payment history, indicating that they are a low risk to the prospective lender, but in the real world this isn’t always the case.

Published on 23 Apr 2019 by Tom Blandford

Full Article

Do I Owe a Debt If It's Not On My Credit Report?

Information that appears on your Credit Report should (in most cases) follow a fairly predictable lifecycle. But don’t think that if an unpaid debt no longer shows up, you’re no longer responsible for it.

Published on 21 Apr 2019 by Tom Blandford

Full Article

Do I Have a Default? How to Find Out

For lots of lenders, coming across a Default on your Credit Report is a troubling sign. It’s certainly more serious than a missed payment or arrears on your file, which are likely to have less of an impact on your chances of being approved. A Default represents a key moment in the eyes of a lender: it shows that on a previous credit agreement you stopped being a borrower and became a debtor.

Published on 29 Mar 2019 by Jamie Mackenzie Smith

Full Article

Do I Have a CCJ? How To Find Out

If you have a County Court Judgment (CCJ) in your name, it can have a serious impact on your Credit Score and ability to borrow for the entire time it is active, as well as potentially affect the outcome of the checks carried out by prospective employers, landlords and insurers.

Published on 26 Mar 2019 by Jamie Mackenzie Smith

Full Article

How Bankruptcy Affects Your Credit Rating

In terms of negative information that could appear on your Credit Report, evidence of bankruptcy or other forms of insolvency is about as serious as it gets and it’s likely to adversely affect your ability to take out new forms of credit for a considerable amount of time.

Published on 7 Mar 2019 by Tom Magor

Full Article

Insolvency and its effect on your credit score

Contrary to the belief of some, insolvency is not a ‘get out of jail free card’. When you are declared insolvent, the entry remains reported for six years on your Credit File and will continue to pose a significant barrier to your chances of obtaining credit – even after the insolvency is discharged.

Published on 30 Jan 2019 by Tom Blandford

Full Article

Can you go to prison for debt

The short answer is: yes, you can go to prison for debt, but only if you fail to pay your council tax, any magistrates fines, TV license or fees relating to a motoring offense, and even then there are plenty of methods that are usually tried before a prison sentence is carried out.

Published on 22 Aug 2018 by Barry Stamp

Full Article

Northampton Court CCJ – Why is it on my Credit Report?

If you’ve been issued with a CCJ, chances are that it could appear on your Credit Report as having come from Northampton County Court Business Centre (CCBC), even if you or the claimant have no ties with Northampton whatsoever.

Published on 31 Jul 2018 by Jamie Mackenzie Smith

Full Article

What Happens When You Miss a Payment?

Late payments are a reasonably common entry on Credit Reports. They can occur against all kinds of credit agreements: everything from mortgages to store cards and unless you have a Direct Debit set up to make repayments automatically each month, you’re reliant on remembering to physically make your repayments each month. For a lot of people, this is where mistakes happen.

Published on 6 Jul 2018 by Kiah Phillips

Full Article
keyboard_arrow_left

keyboard_arrow_right

We are rated number 1 for customer service on