Getting out of debt is never easy. Whether the cash-flow problem in the family budget is temporary or permanent, it takes positive and affirmative action to get back in control and eradicate debt.
Hopefully a problem can be spotted before it arises. Whilst still up to date with payments it should be possible to speak with lenders and try to agree on some form of revised payment plan where reduced monthly installments over a longer period can ease the strain. Lenders will be sympathetic and reasonable provided the request is realistic. Asking for a long payment holiday or tiny payments that go on for ever will not be well received.
To help your cause work out a detailed family budget where you can demonstrate the savings that the family will make and what can be afforded. If dealing with a single creditor then this approach can be very effective. Where there are multiple creditors the time involved in negotiating with them all can be draining for the novice.
If you are not confident dealing with creditors then it may be worthwhile considering the help of a debt counselor or debt advisory company. They have the advantage in that they deal with debt issues every day of the week and know what is acceptable to lenders and what is not.
But even without specialist help you should not be harassed by lenders. There are a number of codes of practice and laws in place to prevent borrowers being chased for debt in an unprofessional way.
If you believe you are being unduly harassed by a lender then there are a number of steps that can be taken to get the practice stopped. Write to the lender and express your concerns and inform them that you are familiar with the terms of Section 40 of the Administration and Justice Act. You should also state how you wish to be contacted in the future.
Your written notice should also make reference to the Office of Fair Trading Debt Collection Guidance and that you may consider making a complaint under that provision. Whilst the Oft will not act on individual complaints they do collate information on lenders and will take action if there are numerous notifications.
The Police will rarely take any action unless there is clear evidence of serious harassment. Therefore documenting every phone call or door knocking call that is made will help to prove a case both with the Oft and police if necessary.
Most lenders will also belong to a trade body. Look up information on their website and see what they say members will do in respect of debt collection practices. If they are not complying then write to the trade body and make a complaint.
More radical action to reduce the number of calls received includes taking a BT call option called `Choose and Refuse`. This allows the subscriber to select by entering a PIN which calls to receive and those not welcome will hear an automated message next time they call.
There are a number of money saving money making tips and techniques that can help families adjust the lifestyle and spend to match their income. Simply asking lenders to accept reduced payments or a write off without doing something in return will curry no favour. Being reasonable will help derive a fair solution for all parties concerned.
