What to do when a debt collector calls
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Before the vultures come circling around your doorstep in the shape of debt collectors and bailiffs, your next step is to get back in financial control.
According to National Debtline there are golden rules you can follow where you won’t go far wrong.
To avoid being easy prey, rule number one is not to ignore your financial problem: it won’t just go away, and it could lead to further debt problems in the future.
Your next move is to stop creating debt and spending tomorrow’s money today. As the National Debtline rules warn: “This could lead to you losing your home”.
dealing with debt
Keeping possession
Research shows an average of 388 mortgage possession claims are issued each day, with 272 mortgage possession orders made, a harrowing thought!
Positive action you can take is to figure out what you owe to whom, and to make a list including your statements, interest rates, total amounts and minimum monthly payments.
National Debtline recommends tackling your priority debts first to avoid bankruptcy, an IVA or pressure from debt collectors becoming your reality.
“The golden rule is to not avoid speaking to those you owe money to as early as possible, return phone calls, keep them informed,” says independent financial adviser Graham Ellwood, from Guildford Wealth Management.
“Agree a token repayment: pay something, however small. Always keep a paper trail because you’ll need proof if you go to court and for creditors.
“Don’t touch IVAs with a bargepole because of the expense,” Ellwood adds.
