Ignoring Debts


If you're expecting a positive change in your financial circumstances soon, it may be possible to keep things as they are i.e. paying minimum contractual repayments & to keep using your available credit. This way, you're not alerting your creditors to any problems & not affecting your current access to credit.

It's important to remember that when contacting creditors about potential repayment difficulties that you may encounter restrictions & a reduction in your borrowing limits. Banks may even freeze your bank account immediately. Creditors usually do this to reduce the financial risk to them but it means an immediate lock-down on your finances. You may enter a crisis debt situation unnecessarily.

Improving your situation

You may also find that with some budgeting guidance & income maximisation, your financial difficulties can be stabilised, contact us for free help.

Some debt clients have made savings each month worth hundreds of pounds, this can make all the difference. Equally, if you're not claiming your full state benefit entitlement, you could increase your income.

Assessing Risk

With the do nothing approach, you will be speculating that you're not insolvent (in crisis debt), this is a high risk strategy for dealing with debt because you may end up increasing your debt waiting for an improvement that never happens. If your debts increase, this may limit your eligibility to certain debt options & will increase the time it takes for you to become free from debt.

Enforcement of Debt

Your creditors have enforcement options to recover debt owed to them, some of these can affect your property, other assets, essential services, liberty (imprisonment) & credit rating. If you ignore the problem, it will not go away & it can get worse by leaving it.