When your debts have got out of control and your creditors are making demands on you, it is easy to panic and make the situation worse. The key is to stay calm, treat your creditors with courtesy and negotiate with them to achieve a mutually acceptable solution:
- Always respond to phone calls and letters promptly.
- Maintain written records of all communication.
- Be honest and realistic – making promises that you cannot honour will only worsen the situation.
- Be clear when stating how you will address the problem.
- Seek advice from a professional – ask for help from a finance specialist, solicitor or the Citizens Advice Bureau.
- Never use bankruptcy to threaten your creditors – polite negotiation will invariably achieve a better result. Equally, don’t allow yourself to be bullied by your creditors – if they attempt to threaten you, report them.
- Always endeavour to make your scheduled payments on time, or contact your creditors in advance to explain why you cannot make payment. Paying a proportion of the amount due is always better than simply refusing to pay anything at all.
