For many people, the
most vicious and brutal four-letter word in the vocabulary doesn’t start with
“F” and rhyme with truck. It’s DEBT.
Indeed, if you’re
swimming — or perhaps sinking — in debt, then be assured that you aren’t alone.
The average household debt in the UK has now surged to £15,400,
spread out across banks, credit card companies, and other lenders. And that’s
not even the worst of it. According to the Registry Trust, which stores records
of County Court Judgements (CCJs) in England and Wales, there were over 320,000 consumer CCJs in
the first quarter of 2019 — the highest ever recorded.
If debt collectors are
poised to strike or have started waging an attack, then here is your 5-step
survival guide:
Step 1: Don’t ignore
letters and calls, and don’t procrastinate either. It’s like having a bad
toothache: the longer you put off dealing with it, the worse and more painful
it will get until you stumble to the dentist begging for mercy (but at least dental office design has
improved over the years, so you can surf the web or watch TV while you
anxiously wait for the drilling to begin).
Step 2: In the immortal
words of late author Douglas Adams: Don’t Panic! Debt collectors are extremely
capable of terrifying and terrorizing. Stay calm, and remember: there is no
debtors prison, and you , have legal rights and protections.
Step 3: Make sure that
you actually owe the debt in question. Debt collectors make all kinds of
mistakes. And even if you’ve confirmed that a debt is owed, there may be some
discrepancy regarding the amount. You can check your credit report online, and
if that doesn’t answer your questions then demand to see proof of the amount
you allegedly owe.
Step 4: If possible,
review (or have someone competent who you trust review) all of the contracts or
agreements that relate to your debt, in order to verify that interest amounts
are valid instead of arbitrary. Keep in mind that regardless of their threats
and scare tactics, collectors may be “statute barred” from collecting old debts
(typically six years or older).
Step 5: Once a debt has
been confirmed, negotiate a settlement
with debt collectors. Contrary to popular belief, you do not necessarily need
to pay the full amount. In fact, virtually all debt collectors will gladly
accept less than the full amount that is technically owed. After all, 50
percent of something is better than 100 percent of nothing.
You
may also benefit from working with a firm that specialises in helping people
deal with debt collectors. Naturally, these firms charge a fee for their
services, and some can be quite expensive all things considered. However, it
may be worth the cost, considering that debt collectors can and often do break
the rules to achieve their goal. If you are well informed and have the time,
then you should be able to handle it yourself. If you are more comfortable
working with experts or if you are busy, then getting some help on your side
might be the way to go.
