2007-07-27 19:37:44 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Hello.The first thing you should do is approach the loan firm directly and tell them you cannot afford to repay the amount every month.You should then make an offer to them for an amount you can reasonably afford. Secondly,if you believe you cannot do this,then get help from the Citizens Advice Bureau (CAB) who can and will assist you in this.
If you choose not to contact the loan firm,they will write to you no more than three/four times about your refusal to pay.If you then choose to ignore all these letters,the loan firm can apply to the Courts for seizure of your assets to repay the loan.If that happens,you will be liable for Bailiff and Court costs. If Bailiffs come round,they can legally enter your premises and remove anything (within reason) and auction them off. If you refuse entry to any Bailiffs, they can ask the Police to assist them. If there has been any criminal intent to borrow knowing that you could not afford the repayments,then you could face prosecution.Your future credit rating will be affected for up to five years and you will find borrowing money for any use extremely difficult and very expensive. There is also the possibility of you being declared bankrupt as well. Do not borrow any more money to pay off this current debt.This only compounds the problem and makes it worse for you. I hope this helps. Alan L.
As I say,I suggest you contact the loan firm and/or the Citizens Advice Bureau.This is by far the best solution.
2007-07-27 20:07:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Do not allow this matter to spiral out of control. You must contact the company and explain that you are experiencing financial difficulties and cannot meet your repayments.
I suggest you contact CCCS (Consumer Credit Counselling Service) ASAP. They are totally impartial and will offer you immediate help and advice. Call them on freephone helpline: 0800 138 1111 or www.cccs.co.uk.
CCCS will send you their info pack and/or they can arrange for you to discuss your problems with an experienced counsellor. You will be given a reference number and ongoing support if and when you need it. CCCS is a registered charity and is recognised by most banks and financial institutions throughout the UK.
Your only 'consequences' could well be an arrangement between yourself and the loan company for a small monthly payment within your means. CCCS will guide you through this without the courts or any sinister parties becoming involved. Take my advice; act now but, whatever you do, do NOT ignore your creditors.
Good luck and please don't get yourself stressed.
2007-07-28 12:00:37 · answer #2 · answered by Mozey 3 · 1⤊ 0⤋
Nothing much really. If the company to whom you owe the money try to claim their money back, offer to pay off the debt by way of small [SMALL] monthly payments of only a few quid.
If they will not listen to reason and the issue is taken to court, just ask the court for a reasonable amount of time in which to pay off any outstanding debt. You must appear in court to be wearing clean but cheap clothing, no make up and cheap shoes. You must give the impression of poverty without grime.
From the very outset you will have the sympathy of the court. The people to whom you owe money are the greedy capitalists while you are the victim of their greed.
If the company to whom you owe money do not get some contact from you in the near future, they could just hand the debt collection over to a firm of bailiffs. This you do NOT want. The bailiffs will have legal rights to your possessions to the value of the outstanding debt[s].
2007-07-27 19:52:45 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Depend to whom and where you live.
A credit card will call you and pass your info to a collection agency until you pay or declare bankruptcy.
A loanshark will break your legs.
A car loan will have the repo man after you.
A personal loan can mean the end of a friendship or a lawsuit.
2007-07-27 19:42:15 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Best not to let it get to the consequence stage.
Speak to the company asap and explain your difficulties.
Come to an arrangement whereby you can pay it off in amounts that are manageable for you.
Explore whether they may be willing to 'forgive' some of the debt (unlikely).
Believe me, you don't want to add to your stress by getting letters threatening debt collectors etc and you don't want to wreck your credit if you can help it.
Good luck!
2007-07-27 20:21:00 · answer #5 · answered by Shiraz 2 · 1⤊ 0⤋
It will be marked on your credit file.. you will find it harder to get any loan, credit card in the future. Then the lender could appoint debt collectors.... you could find yourself getting visited by baliffs... and if you can't pay.. UK baliffs usually charge £80 just for visiting you.... added on to what you owe.
2007-07-27 19:42:33 · answer #6 · answered by Narky 5 · 0⤊ 0⤋
It will probably get turned over to collections and will be on your Credit History
2007-07-27 19:48:04 · answer #7 · answered by MiRaNdA rOsE 6 · 0⤊ 0⤋
You may get a visit from the bailiffs.
2007-07-27 19:39:55 · answer #8 · answered by richard_beckham2001 7 · 1⤊ 0⤋
You damage your credit.
2007-07-27 19:47:35 · answer #9 · answered by Anonymous · 0⤊ 0⤋