People find themselves with many types of debt based on their lifestyle. Credit cards and store cards are used by many consumers and when balances are not repaid in a timely manner, interest and late payment charges accrue. Failing to repay a balance can lead creditors to take additional action like filing County Court Judgments (CCJs). Unpaid mobile phone bills and student loans can also land a person in deep financial trouble as creditors seek to recoup their money.
If you have store card, mobile phone or student loan debt contact us today! It is likely your mobile phone provider has referred the debt to Lowell Portfolio one of the largest debt collection agencies in the UK. We can help you with a debt management plan.
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When a creditor takes a debtor to court for money owed and the court determines that the debtor should pay, a CCJ is issued to the debtor
This document explains how much is owed, to whom the money should be paid, whether it should be paid in instalments or in full, and the payment deadline. If you have received a CCJ, you should respond to it. If you do not pay the full amount due within one month, a CCJ record will be placed on your credit file for six years. Keep a record of CCJ payments as proof that the money has been paid.
You can ask the court to allow instalment payments if you are unable to make a requested lump-sum payment. If the CCJ allows instalment payments but these are too expensive, request that the court change the instalment amount. You will need to provide details regarding income and expenses and the decision is at the court’s discretion. If any payment is unaffordable, ask the court to put the CCJ on hold until you are able to pay it.
If a mobile phone bill goes unpaid, it will eventually affect your credit rating, making it difficult to get a loan, mortgage, or additional credit
If you earn little or no income, consider a Debt Relief Order (DRO). It is one way for people with little spare income and assets who are not homeowners and owe less than £15,000 to make no payments on and discharge covered debts after one year.
Unfortunately, there are a few ways to avoid repaying student loan debt. UK student loans are not covered by most debt management solutions, including bankruptcy. The good news is that student loans do not directly affect credit rating because repayments are deducted from income. However, failure to repay them will have a negative effect.
In the UK, a standard student loan does not become payable until the borrower earns more than £15,000 per year
If the borrower earns less than that or is unemployed, payment will not be requested or expected. However, a private student loan may need to be repaid and various debt management tools assist with repayment or write-off of this debt.
The best thing a person in debt can do is seek the advice of a debt management professional before the financial situation spirals out of control. This expert reviews assets, income, and expenses and recommends ways to repay or eliminate the debt with as few negative repercussions as possible. Tackling debt rather than letting it linger gets you back on track financially.