Who are Creditors?
- Creditors are organisations or individuals who you owe money to.
- Creditors can be credit card companies, loan companies, banks where you hold overdrafts, and so on.
- Reputable Creditors adhere to, and are regulated by, the Consumer Credit Act 1974.
- This act also gives you certain rights in respect of dealing with your Creditors.
Repaying your Creditors
- Apart from bank overdrafts, the debts you hold with your Creditors will require monthly repayments.
- These can involve different amounts at varying interest rates at different times of the month.
- These debts can soon mount up and become unmanageable.
What are priority bills and debts?
- Rent or mortgage payments and secured loan payments are a priority and must be paid first. If these bills are not paid you could lose your home.
- Council Tax payments need to be kept up to date. The Council can use bailiffs, apply for an attachment of earnings through your benefits or wages, and apply for your committal to prison for failing to make payments.
- Electricity and gas: If payments aren't kept up to date these companies may obtain permission to disconnect your supply.
- Magistrates' Court Fines: If payments are missed, bailiffs can be sent to collect unpaid fines. Refusal to pay can result in imprisonment. Missed maintenance payments can result in deductions from earnings or committal to prison.
- Hire Purchase agreements and rented and hired goods can be repossessed if payments aren't kept up to date.
- Income Tax/VAT: Missed payments can result in bailiff action or committal to prison.
- TV Licence: Missed payments could result in a fine of up to £1000.
Creditor chasing - be in control
- Creditors can be very forceful in getting their money back if you ever fall behind in repayments.
- If you are in serious debt, act now.
For more information regarding Creditors, call us now on 0808 163 9579 to speak to an advisor or complete the form below.
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