Borrowing money can assist you with a difficult, unforeseen emergency, but once you start relying on it for your daily survival, you’re creating a cycle that becomes increasingly harder to escape. How does the debt cycle work? The debt cycle can begin when you take out a loan during an emergency – for instance, a […]
24 January 2018
Debt can very easily spiral out of control; it’s easy to take out, but can be significantly harder to pay off. When the debt hits the fan, many people tend to stick their heads in the sand by ignoring it. Feeling overwhelmed by debt can be scary, but you will not do yourself any favours by ignoring it. The problem will not go away, it will only get worse unless you take steps towards taking control of your debt such as seeking professional help from a debt counsellor.
What exactly will happen if you ignore letters, emails and phone calls from your creditors? Firstly, it is very important not to avoid or ignore letters or emails from your creditors, as if you let them mount up, it will become increasingly difficult to go through them. Furthermore, you could miss important notices such as your creditor telling you that they’ve passed your debt to a debt collection agency, default notices, or judgments.
You will have a strict deadline to reply to some of these communications and the last thing you want is for legal action to be taken against you, especially if you have assets to lose such as your house or car. You should ensure that all of your creditors have your correct address and that you notify them if you ever move house and change address.
You should also avoid ignoring phone calls from your creditors. It may seem like a stressful and inconvenient task to deal with your creditors over the phone, but your creditors should always speak to you politely and truthfully over the phone. You may feel relieved after speaking to a creditor over the phone if you explain to them that you can’t afford to pay what they want and arrange to pay what you can afford.
It is important to note that you do not have to speak to a creditor if you don’t want to. Anything important your creditors have to tell you will always come in writing, so you can request they email you instead.
If you feel like there is no way out of your debt troubles, it is important to seek professional help rather than ignoring the situation. A debt counselling company such as DebtBusters can assist you with free, no obligation advice going forward. DebtBusters can also offer you a host of highly effective debt solutions to help lighten the burden and guide you to debt freedom. These solutions involve negotiating lower interest rates with credit providers and providing you with legal protection.
Ignoring your debt will only make your situation harder in the long run. Rather seek professional help and advice to guide you out of your debt troubles and on the path towards debt-freedom.