'Communicate' to solve debt problems

19/06/2009

Customers facing high personal debts must always keep their creditor informed about any repayment problems.

Credit Action, a financial charity, also said that debtors should get "independent" advice.

The guidance comes with financial concerns on the rise in the UK.

Citizens Advice, another charity, found that inquiries on money matters from members of the public rose by nine per cent over the last year - with redundancy-related concerns rising by over 100 per cent.

The UK is currently in recession and the Bank of England predicts that recovery will only come in 2010.

Chris Tapp, director of charity Credit Action, said: "Firstly, you need to make sure you are communicating with your creditors so that they know what the situation is. Secondly, you need to go and get some free and independent advice. The worst thing you [can] do is do nothing. Unfortunately that is what many people do, they put their heads in the sand and do nothing and hope things will get better."

Kevin Still, EuroDebt director, added: "Taking the decision to do something about your debts is a fairly major one and often not easy to talk about. Once you have made the decision, which may have taken upwards of nine months, then you want to speak to an experienced professional fairly quickly and generally in private. EuroDebt’s model of meeting prospective clients in the privacy of their own home, generally within 72 hours of the request for a meeting, is designed to address both of these requirements.

"Having direct access to key documentation like bank statements, salary slips, utility bills and credit card statements is vital to get a true picture of a household’s income and expenditure. Client preferences, employment conditions and disposable income then play a major part in the debt solutions available, all of which are discussed at the meeting. Doing nothing should not be an option."

Tags; Housing Debt and Bills, Young Family Finances, Credit Card Lifestyle, Recent Graduate Debt,

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