UK Debt Problems
If you get into difficulties
Tell the lender
The first thing to do if you find yourself unable to repay your loan is to tell your lender.
The worst thing you can do is to do nothing and pretend the problem will go away.
It won't. If you delay telling them the lender will assume you're messing them about. Whether or not you've taken out a secured personal loan / home owner loan or an unsecured loan you will be putting yourself into dangerous territory.
Lenders are very good at dealing with people who don't play it straight with them so make sure they don't get the wrong idea.
If you stay silent - and particularly if you don't answer their correspondence - they'll assume you're trying to cheat them.
If you contact them and are open about your problems, a good lender will be sympathetic and try to come to a new arrangement with you. They greatly prefer payments - of any amount - than expensive hassling.
Make sure you can stick to your new arrangement as it won't be taken very well if you have to go back to them again too soon.
However, if that's what you need to do, don't shy away.
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Using the voluntary agencies
The best thing you can do if you find yourself in trouble repaying your loan is to contact one of the voluntary agencies. They can be an very good source of help.
A good place to go is The National Debtline. They have a free telephone advice and support service and also produce a useful free self help guide.
Tel 0808 808 4000.
Also try your local Citizens Advice Bureau.
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Borrowing more to pay your debts: Beware!
Be careful of companies who offer to "consolidate" your debts into "one easy repayment".
While it's always a good idea to see if you can reduce your outgoings by shopping around for better rates, these loans can end up costing you a lot more than necessary.
Many people who go for these type loans end up even further in debt.
Brokers make good commission from them - particularly if you've got a secured personal loan / home owner loan. So be wary of getting talked into a further "consolidation loan" until you've taken truly impartial advice ie from one of the voluntary agencies.
Bear in mind that if you've got to the stage of wanting this type of loan, it may well be a sign that you need to think carefully about your whole approach to borrowing.
Contact
one of the voluntary agencies who probably
know more about loans than many of the so called professionals. They should be
able to advise you on the best thing to do.
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