Free Debt Collecting Advice
Due to the current recession and credit crunch the rate of debt collecting incidences have rapidly increased. Debt collectors are always a last resort and other methods will often be used first to address a debt problem.
If you owe money to a business, bank or individual then you may find they send a debt collecting agency to recover the money which is owed. This will only be a last resort and you should aim to make contact with the other party to come to an agreement regarding payments at a rate and frequency you can afford. If you come to an agreement but do not stick to it you may find that the business will no longer give you chances to pay and go straight to a professional debt collecting agency.
A debt collecting agency will make contact with you, asking you to pay the outstanding debt, you will once again be given the opportunity to make a payment plan or you can make an offer to pay a certain percentage of the debt in the hope that they accept this and write it off. If you set up a payment plan and stick to it, eventually your debt will be completely paid and you should have no further problems. If you end up not paying your payments yet again you will find the debt collectors arrange visits to your home. You will be charged for every visitor made to your home and could prove to be very expensive and you would have been better off paying the bill in the first instance.
A business may avoid a debt collecting agency and take your debt straight to court. If you do not win your case you will receive a county court judgement and a an order to pay the debt, this will damage your credit rating and ability to receive credit in the future. Failure to pay after this will result in bailiffs who have the power to seize your goods. In this situation you will also be charged for the bailiffs and any legal fees on top of your current debt.
You do have rights with both debt collectors and bailiffs. Debt collecting agencies cannot seize your goods as payment for your debt and bailiffs, although they can seize your goods they cannot force entry into your home.
If you are a business owed money by an individual you should first try to make contact with them, offering a payment plan, reduced payments for a limited time or freezing any interest the debt may be building up. Coming to an agreement and making payments more affordable is more likely to lead to individuals attempting to pay their debts. This is often a cheaper option than contacting a debt collecting agency to chase the debt for you.
If you are being pursued for a debt you cannot pay or do not agree with the debt then you should take advantage of the free legal advice available from many solicitors and legal firms.