Many people are now asking questions such as: “Can I Stop My Creditors Chasing Me For Outstanding Debts?” there are ways to do this which will be described on this page, read on for more information.
There are different ways in which to combat chasing from creditors’
The Obvious Solution: Repaying The Debt
Repaying the debt owed to the creditor will make them inevitably stop chasing you for the outstanding debt, as there will no longer be the liability there was previously.
However many of you reading this article will be in the position of not being able to repay creditors outright, so for that there are other solutions.
Enlisting Expert Help: The Debt Management Plan
One way to stop creditors from chasing you is to enrol on what is known as a debt management plan, in a nutshell this is a scheme which enables you to do a range of different things:
a) Halt creditor hassle (unless there are unlikely complications) – also halts’ any bailiff actions.
b) Freeze interest and charges
c) Consolidate monthly repayments, making your debt contributions more manageable each month
So one answer to this question is to enrol on a debt management plan, for more information about this see the page or use our contact form (or the debt test) for a free debt assessment to see if you qualify for a “DMP”.
More Formal Debt Help: The IVA
The IVA (Individual voluntary arrangement) is a formal debt solution that has all of the benefits of a debt management arrangement, halts’ creditor hassle (this time through a legal injunction), freezes all interest and charges on debts, consolidates’ monthly repayments, but it’s also legally binding and more formal an arrangement in comparison to a DMP.
An IVA is a particularly popular solution for individuals who have multiple creditors and larger levels of debt (generally a minimum of £5000), and it also enables people to write off up to 75%-85% of their debts upon copletion of the IVA, which, taking into account the amount of debt an individual may have this could mean a huge amount of money being written off.
If you wish to find out more, take a look at our IVA page or get a free debt assessment or use our debt test.
The DIY Approach
In comparison to the above approaches the “do it yourself” approach will involve perhaps the most input from yourself manually.
Dealing with creditors’ manually is possible, however when dealing with this alone you should remember a few different things:
1) If the creditors’ are already frustrated with progress in dealing with the debt (for example if you have missed multiple payments already) they may object to your suggested repayment plan.
2) If the situation gets worse and there are further mistakes (if mistakes have been made) in the management of your finances, you may be at risk of bankruptcy, sometimes expert help can be a good idea even if it doesn’t appear to be the case at first.
3) If you have no experience in dealing with creditors over debts or have been struggling with such, it could make for a very stressful exercise where your decisions are affected by your feelings at that present time.
4) Any negotiations you make with creditors’ will still more than likely be present on your credit file if they show reduced payments, so you may not be much better off by managing your own debt.
5) Your creditors’ may not be interested in negotiating a settlement figure or freezing any interest and/or charges.
These are all considerations that should be made when managing debts’, also remember there is a time limit on how long creditors’ can chase you for debts.
For more information feel free to take our debt test or get your free debt assessment to see if there are ways we can help with your debts.