I understand having unwanted debts could create a lot of emotional stress. In addition to that, not being able to understand how to handle your debt problems could impair your well being.
However, it is important to understand if you do not pay back your debts, you could get a notice from the court.
Read this guide carefully to understand how a debt company could help you out. I have included FAQs and everything you need to know.
What is a debt company?
A debt company or a debt agency helps individuals and businesses pay back their debt amounts to their creditors.
They do this by consolidating debts into one single payment. This is then shared between the creditors.
What is the role of a debt company?
Debt companies help you with finding a debt management plan. They help you understand how you could overcome your debt problems.
Moreover, they could provide you with alternate debt solutions that could help you pay off your unwanted debt.
Furthermore, a debt company negotiates with your creditors to convince them to accept reduced payments.
What documents will I be asked to give to my debt company?
You could be asked for documentation to prove your debts. Moreover, advisors ask for documentation to understand your financial situation and which debt solution could be the best for you.
The documents you could be asked to provide include:
- Wage slips: to understand you monthly income
- Bank statement: to review any transactions or payments made to your creditors
- Reference numbers: in case you have forgotten about any debts that is due
What type of debt solutions can my debt company help me with?
You could get help for almost any type of debt solution through a debt company.
However, it could depend on the company if they are providing that particular debt solution or not.
Can a debt management plan affect my credit score?
If you are in a debt management plan, it is possible that your creditors are able to track your payments. If you are paying less than the required amount, your credit rating will be negatively impacted.
This means it could be difficult for you to apply for more credit as long as you are making reduced payments.
What do debt collectors do?
Debt collection agencies contact debtors and try to convince them to make their payments. This is done through letters and phone calls.
They inform you about the consequences of not paying your debt. Moreover, they could encourage you to start making your debt payments again.
How do agencies collect debt?
The debt collection process is simple.
The process begins with submitting the debt details. This could be done through email, online form, or by calling them. After your information is received, the company verifies the clients documents.
A Letter Before Action is sent. This is a legal requirement that asks clients to pay the money they owe. You will be given a deadline of approximately 14 to 30 days.
Within the deadline you are expected to make the payments. FJCM will contact you in case you do not repay them.
What happens if I do not make payments to the debt company?
Not paying back your debt to the providers could be risky.
A legal action could be taken against you through court. You will be sent a notice instructing you to make your payments. This needs to be complete within 14 days.
If you fail to do so, County Court Judgement (CCJ) could take strict actions against you. The record of this judgement will be kept for 6 years. This could make it difficult for you to get credit in the future.
Is it possible for the debt company to come to my home?
The debt company contacts debtors and informs them to make their payments. If you refuse to make these payments even after a courts order, an enforcement action could be taken against you.
The High Court Enforcement Officers could visit your home and force you to make payments. However, it is likely that the bailiffs give you an estimated time of 7 days to make your payments.
If you still do not make payments, your home or business could be sold to pay off your creditors.
Can a debt company take you to court?
If you are not making your debt payments, a debt collection agency could contact you. This is done either through phone calls or letters.
However, it is possible that they sue you through court.
Frequently Asked Questions (FAQs)
Which company is the best for my debts?
There are a number of debt companies you could contact. I will list the best ones down for you.
- National Debtline
- GW Financial Solutions UK Ltd
- Trust Debt Advice
- National Debt Advice
- NTF Financial Solutions Insolvency
Is a debt management plan good for me?
Yes, it is possible you could get out of your debt problems through a Debt Management Plan.
This is mainly because a DMP will help you budget and manage your finances. Moreover, you could be provided with a personalised debt solution.
How much does a debt company charge?
The price for debt companies could vary based on the individual organisation. You might have to pay a monthly fee if you are in contact with your advisor. This is an amount set by the law.
However, there are organisations that could provide free debt advice.
In case you are having trouble understanding what you should do to pay off your debts, I think it is time you contact a debt company. They will provide all the necessary information you need.
Always remember to be well informed about your rights before contacting a debt company. However, if you fail to make payments, you could get into a lot of trouble with the law.
Read the article above in order to be well informed. If there is anything you would like to know, please feel free to contact us.