What do to when faced with debt recovery
If you have missed payments on your bills or debt repayments, then you may know how it feels to receive a letter from a debt recovery agency (also known as a debt collection agency). All of a sudden, your situation can feel a lot more serious.
If you do receive this kind of letter, it`s important that you contact the debt recovery agency to explain your situation. Equally, you should stay in touch with your lender, who should be able to give you further details on what you owe and how you might be able to repay the debt.
Contact the debt recovery agency
In a lot of cases, the debt recovery agency will be understanding and will want to come to an agreement on to how you repay your debt. They may allow you to set up a payment plan that enables you to repay your debt at a reasonable pace.
Remember: any company collecting debt is bound by strict OFT (Office of Fair Trading) rules, and cannot make any unreasonable demands. Debt collectors and the Government have also recently agreed to give struggling borrowers 30 days` `breathing space`, in which you should take the opportunity to seek debt advice.
Your rights are detailed in the OFT`s `Debt Collection Guidance` document, which can be found at http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf.
Speak to a debt adviser
If you`re unsure about how to deal with your outstanding debt, a professional debt adviser can offer guidance. A debt management company can negotiate with the debt recovery agency on your behalf, and may even be able to help to reduce some of the additional charges placed on your debt.
If they think it is the best option, your debt adviser can also recommend the best debt solution for your circumstances.
For more information on a range of debt solutions, contact one of our debt advisers on 0800 161 3516.
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