Debt and money

Information to help with credit/debt problems.

There is an increasing number of UK residents that are finding it impossible to manage their debt. Often debt problems are triggered due to a change in circumstances, the loss of a job, the break up of a relationship, ill health, etc. Even a small change of income can leave some people unable to manage their payments to creditors. Professional advice on money management has therefore become increasingly important. Below you will find links to a variety of impartial organisations that can help.

If you have difficulty in paying rent please read the information on the Solihull Community Housing web site.

What will happen if you are unable to manage payments to creditors

If you miss payments to creditors then that company is entitled to seek payment from you until you clear those arrears or you pay in full. The creditor will most likely attempt to contact you by telephone and in writing to arrange payment. It is vital that you do not ignore this and you make an arrangement with them to pay.

If you are having difficulties coming to an agreement you may have to write to them giving details of your income and expenditure. Failure to meet your payments under any new agreement or failure to acknowledge any correspondence from your creditor may result in them taking legal action against you.

This could result in a County Court Judgement being issued against you. This means that a court will decide how much you have to pay each month. If this is done by default (i.e. you fail to enter an amount on the claim form and return it to the court) this figure can vary right up to the full amount owed, at the request of the creditor, and will include any court costs.

Failure to meet this payment could result in a warrant being issued and bailiffs coming to your home to collect the money you owe or goods to the equivalent value. It could even result in an attachment of earnings order, where your employers will be contacted and a set amount taken directly from your wages each month until the debt is cleared.

Any judgement entered will effect your future credit raiting and will be on your record for 6 years after the date it was entered. The judgement can be set aside if payment in full, of the total amount owed, is made within one month of the date of Judgement.

If judgement has been entered at an amount you cannot afford and you are unable to pay in full, then you can apply to the court for a variation order. For a small fee the amount you have to pay each month will be reduced to a figure that you can afford in line with your income and expenditure. A certificate of satisfaction can also be applied for from the court once the debt has cleared. This will help to improve any future credit rating.

Contact Details

Consumer Advice and Information in Solihull, is now provided by our partners at Consumer Direct West Midlands. Consumer Direct is a telephone and online consumer advice service, which is supported by local authorities (Trading Standards) and Central Government. If you do need support or assistance from Trading Standards, you will of course be referred to them by Consumer Direct.