Help, Advice please- Debt Collection Agency

[Introuble11]

Please can someone give me some advice. I am in great financial difficulty for a variety of reasons. I have never been in this kind of trouble before in my life. Anyway, I now have a big debt to pay (over £3000). The company have said if I don't pay it immediately they will put it in the hands of a debt collection agency. I do not have that kind of money to pay.

My question is what happens when a debt collection agency takes over a debt? Will they let me come to an arrangement to pay it off monthly? What are the implications of this? I am terrified at the thought of it going to court or that I will have bailiffs round here especially as I have 2 small children.

I don't own any assets and so can't even sell anything to pay the debt. Please give me some advice.

Thank you.

Recommend you get in touch with the CAB, National Debtline or the Consumer Credit Counselling Service (CCCS) straight away before doing anything else. They are free services for people who are struggling with debt. Explain your problem and ask them to help you.

Remember there are pretty strict limist on what debt collection agencies can do (and they are obliged to accept reasonable offers to pay in installments). Have you tried offering to pay the people you actually owe the money to in reasonable installments or is it a case of you did that and missed an installment - which tends to make them stroppier.
The debvt help agencies as listed by CHil will be able to help you, please don't stress too much, you are not the only one to get into a mess like this.
Best of luck.

Thanks for your answers, no I have not made any arrangement with the company yet. This is the first 'red warning' letter that they have sent to me. So if I offer to pay the debt collections agency in installments will they still take me to court?

Talk to the company that you owe the £3000 to and ask them to postpone putting it with a debt collection agency. Then speak urgently with one of those free debt advice organisations I mentioned above as they will be able to look at your total financial picture and give you particular advice based on your individual circumstance. What you don't want to happen is promise to pay more than you can afford and run up more debts in the process.

Do you have any other debts or is this the only one? Any credit cards, loans, overdraft etc?

If you go to the CAB they can freeze the interest on the debt and stop any court action. You can offer as little as £1 per week, I know I have been there in the past

good luck
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