Festive Finance Issues? Here’s How We Can Help - NYL
Christmas places a strain on everyone’s finances, from personal and family finances to SMEs and Sole Traders. The festive season can be a difficult time when it comes to managing money. UK households are taking on more debt than ever before, just to make ends meet. This means individuals are sinking deeper and deeper into a financial black- hole and the situation can spiral out of control.

 

What Happens If You Get Into Debt?

At North Yorkshire Law, we wouldn’t dream of telling you how to spend your money but what we would like to do is make it clear that there are possible consequences if you overspend and Creditors take legal action.
Creditors are now less tolerant when it comes to mounting debts, so it is essential to try and maintain at least minimum repayments on loans and credit card balances.

 

Debt Collection Agencies

Many creditors appoint debt collection agencies to enforce outstanding debts.  These companies will try many ways to obtain payment from you which could involve:
  1. Calling at your home or work by telephone and email or in person
  2. Threatening Court action to recover monies due including serving a sample summons on you (not one issued by the Court)
  3. Forcefully pointing out how your credit rating will be affected by non-payment in some cases
  4. Threatening bankruptcy and seizure of your home or belongings
There are other means by which creditors can attempt to obtain money from you, but these threats are designed to obtain payment from you and can be very frightening.

 

County Court Judgements

If you receive a County Court claim form, you have just over two weeks to respond. It may be that you don’t have to pay off your debts in large lump sum payments, but it’s very important to respond in the timeframe given. If you don’t the court could order you to pay the debt back at a rate you can’t afford and this could lead to further enforcement action.
Unless you pay off a County Court Judgement in full within 30 days of receiving the judgment, it will be entered on your credit record at the Register of Judgments, Orders and Fines and remain there for six years. This can seriously affect your ability to get a mortgage, a credit card or even a bank account in the future.

 

Seek Legal Advice And Help Sooner Rather Than Later

Remember, most debt problems are solvable and there are always options. It is important to first, remember not to ignore the problem, the earlier you deal with debt issues the better and secondly please seek legal help and advice.
If the situation has got to the point where you are being threatened with legal action over a debt, North Yorkshire Law can help take the weight off your shoulders.
We are here to give you sound legal advice and the initial meeting with you is free.  Should your case incur any costs we are always upfront and transparent as to what this cost will be.
If you require information or assistanceabout debt, speak to our friendly team of professional solicitors at North Yorkshire Law today.