Pay back time
Question
I moved house not so long ago and recently went to pick up some of my post from my old address. There was a letter about a County Court Judgement that had been passed against me and apparently I owe nearly £2000. I can't pay it all off, and definitely not in one go. Do I have any options?
Answer
You have various options in dealing with this. The first is just to ignore it and hope it will go away, which of course it won't. In all likelihood your debt will be sold to a collection agency and they will eventually trace you and send the bailiffs to collect the debt.
You could try and deal with this yourself by contacting the company you owe the money to and make an offer of payment that you can afford. This may be rejected or they could ask for considerably more than you can afford.
Another alternative is to go bankrupt, but this can have implications that can last for many years. Being bankrupt can cause all sorts of problems with even such basic things as bank accounts and renting a house. You could try taking out a consolidation loan, but if you do this it's important to be aware that the interest rates tend to be very high and can sometimes lead you into worse debt than you started with.
Probably your best option is to contact an advice agency, such as your local Citizens Advice Bureau (CAB) or National Debtline on 0808 808 4000. They can offer free help, practical advice and information in situations like yours.
Updated: 16/05/2005
Question answered by CAB
