Big life decision

PM22

What happens with the creditors if you can't afford to pay?

SusieT

PM22 said:

What happens with the creditors if you can't afford to pay?

They may phone or send texts ( just block the numbers) if you do answer the phone, tell them that you will only deal with them in writing. 
Then they may send letters saying that you must pay now, possibly with some words in big red capital letters.
Eventually they will default you, and at that point the interest will stop being added. Defauting would ideally take 3-6 months, nut sometimes more.
By then you should have a small emergency fund saved up, and that is when you decide if you have enough to pay them a small amount that you can afford each month even if it is £1 each. 
Thr main thing is that you pay the priority bills, the others get paid afterwards if there is anything left.

PM22

Thank you....what happens if you cannot afford to pay for a few years or only pay token payments for a few years?
What happens then?

sourcrates

PM22 said:

Thank you....what happens if you cannot afford to pay for a few years or only pay token payments for a few years?
What happens then?

Debts will gradually be sent to inhouse collections, then either to outside collectors, or sold to debt purchasers.

Your situation is usually decided by your circumstances, if there is no realistic chance of ever repaying the debt, companies will look at writing off such accounts, or if your making small payments, the discount offers will grow over time.

There are 101 different scenarios that could play out in these circumstances, its impossible to say what will happen with individual cases, however affordability is the key word these days, if you can`t pay, you can`t pay, no point taking legal action and wasting more money if you can`t afford the debt in the first place.

Debt collection can be a very long process, the major firms handle a lot of delinquent accounts, many millions in total across the board, you are just a number on a spreadsheet to them, they have many more numbers and spreadsheets to deal with also, so expect long periods of hearing absolutely nothing.

You may get periodic letters, or phone calls, you may never be bothered again, or your debt might be sold more than once, so many things could happen, best to see how you fit into this picture firstly, the formulate your strategy.

PM22

Thanks for your reply...so I could basically end up paying token payments for the rest of my life....I see....that's not so bad 

EssexHebridean

Others have already given the detailed, serious responses here - so I'll add that realistically - what is going to happen if you don't/can't pay? Surprisingly little...  

To drive a default you need to actually stop paying them in the first instance - and as said above use the money you have been paying them to start building an emergency fund. Then as you get phone calls it is literally a case of telling each one that you will not discuss matters over the pone with them, and that they should consider that from this point forwards, you will only accept communication from them in the post. You can then either block that number from your phone or add it to your address book with the creditor name in big block letters so you know not to answer it. (I do this with spam calls, too) that way you know who's continued to call in spite of your clear instructions to them not to.

Another thing to be aware of is that once the debts are sold on, they will have been bought by their new owner for pennies in the pound - so further down the line they may be open to settlement offers. 

Would I be right in thinking that this whole thing has now got a bit less scary than you originally thought it was? I do hope so - someone else once said on here "ultimately - it's only money" and while that sounds flippant, it is actually that simple. 

PM22

Thank you for all your responses....

I am feeling well again thanks to an excellent NHS dr and some new meds

I can (just about) afford to live....but yes, it's much less scary and it really is just money. Knowing they can't take my home is such a big thing. I'm trying to get a Saturday job so that I can repay, albeit slowly. I'm doing my best.

PM22

Well, I went to Cumbria and had a good look around.

It would be easy to find a property but I can't be sure of finding a job so for now, I think I'll focus on finding a Saturday job here in South East and just try to keep myself afloat