Office of Fair Trading Tips For Getting Out of Debt
The Office of Fair Trading offers information and resources for consumers, and helps to ensure that their rights are observed by all merchants, including debtors and creditors. The OFT is an independent professional Office that is empowered by law with certain powers to enforce fair trade laws and legislation. They're recently launched a campaign to help people who've got in over their heads in debt with credit cards and loans. You'll find a list of helpful tips on dealing with debt on their web site at www.oft.gov.uk. Among the helpful tips offered on the OFT web site are the following to help you deal with credit card and loan debt.
You can get free advice and help sorting out your debt and making arrangements to start repayment from a number of different nonprofit agencies. If your credit card debt is getting out of hand, contact any of the following for free advice:
If you believe that a creditor or debtor is harassing you or treating you unfairly, contact your local trading standards board with questions and to get advice.
If you get a threatening letter or phone call from a creditor, get advice from your local Citizens Advice Bureau or trading standards board. There are law regarding methods of collection to which creditors must adhere.
Try to negotiate with your creditors as soon as you know that your debts are getting out of hand. Many will be willing to accept lower monthly payments. Remember, their goal is to get as much of their money back as possible.
Make a realistic budget, and be sure to check to see if there are any tax credits or business benefits that you are not using. Count in all your monthly expenses and see where you can cut to save money or pay bills. Start with your fixed expenses - rent, utility payments and the like. From there, add in credit card and loan repayments, and finally the mutable expenses like food and entertainment. Figure out exactly how much you can spend each month, and stick to it.
Decide which debts are most important - like mortgage and rent - and which you can pay down quickly, or transfer to lower interest loan accounts.
When you negotiate with creditors, don't make the mistake of accepting terms that you can't meet just to reach an agreement. It's far better to hold out for a lower monthly payment than to agree to make a payment that you can't possibly make. If the company won't accept your repayment offers, it's time to turn to one of the organizations above for help in negotiating.
Remember that there are avenues where you can get advice and help for your situation. The most important thing of all is to get a handle on your current credit situation NOW, and keep it from worsening. Deal with it, pay it off, and start rebuilding your credit with a history of on time payments to clear up your debt.
