When you write to your creditors to make a payment offer, you'll likely get a mixed reaction, with some creditors accepting and others rejecting your offer. You can use a letter to ask a creditor to reconsider your payment offer if they have denied it. You should:
It's critical to try to get your creditors to agree to a rate freeze. It will become harder to lower your debt if you do not do so. If you make little payments, the creditor's interest may be greater than what you're offering to pay, and your debt will only grow. Tell your creditors about it. There will be no silver lining and you will have less incentive to stay up with your payments.
Occasionally, creditors will refuse to freeze interest entirely or will only agree to cut the amount of interest they charge. If your creditors refuse to freeze interest, continue to make the payments you've agreed to.
Your creditors are not obligated to accept or freeze your payment offer or interest. Continue to make the payments you've given even if they continue to decline what you're asking for. Continue to write to your creditors in an attempt to persuade them.
If your creditors reject your offer, it's critical that you don't give up. Make the payments you've agreed to, and then beg your creditors to reconsider. You may fall behind on your mortgage/rent or other vital home bills if you allow creditors to persuade you to pay more than you can afford. You can possibly discover that you don't have enough money to survive on.
Collection agencies, debt collectors, and solicitors have no more authority than the original creditor; all they can do is request payment. If you get a letter from one of these organizations, write back and explain your position. When a debt is stuck, a debt collector can only come to your house with your permission. If you've promised to pay what you can afford, but the creditor isn't satisfied, the debt is stalled.
Allowing them to persuade you to pay more than you can afford is not a good idea. Debt collectors usually collect debts by calling or writing, however they may be authorized to come to your home on occasion. Debt collectors have no legal authority to enter your home or take your belongings. You are under no obligation to let them in.
Creditors may issue you a 'default notice,' informing you of how much you owe and that if you don't pay, they may take further action. Before forwarding your account to their collections department, a debt collector, or a solicitor, creditors normally mail this. Before commencing legal action, creditors must send you a default notice under agreements governed by the Consumer Credit Act 1974. If you receive a default notice, it does not mean you will be prosecuted.
Don't be alarmed if a creditor threatens legal action:
Your creditors are permitted to contact you from time to time to request payment, but they are not permitted to threaten or harass you. If they do, you may be entitled to file a complaint with the Financial Ombudsman Service (FOS). For assistance, please contact us.