If ever you received an arrears notice (notice of arrears) advising that you are behind on loan payments then there are some important things which you’ll need to sort out.

Once in receipt of such a notice make sure that you don’t just ignore it, or what it relates to, as doing so could only make things worse. As the lender could take action against you and as a result of you ignoring the matter. Meaning you could end up paying more than you need to by way of extra interest and charges. Let’s not forget that Missed Payments would need to be sorted out also, as these could affect your credit rating. making more difficult to get credit in the future.

Here’s what you need to sort on receipt of an Arrears Notice

Work out how much it is you owe. Obviously, this is very easy to do just by making a list of all the organisations you owe money to.

Contact those organisations you owe money to. Letting them know that you are having problems, They may work with you by disusing available options for paying back what you owe.

Get some free help and advice. As your rights will depend on the type of loan agreement you’ve and the fact that the law can be complex. There are a number of free debt organisations you can turn to for advice.

  • Money Advice Service
  • AdviceUK
  • Citizens Advice
  • National Debtline
  • StepChange Debt Charity

Put your priority debts first. There are some debts which are more urgent and important than others due to the consequences incurred in not paying them. Such priority debts are recognised as

  • Mortage
  • Rent
  • Council Tax
  • Gas & Electric

Think very carefully before borrowing money to repay debts. If looking into this as a consideration, you should ideally need to sort out some debt advice before borrowing. As undoubtedly you’ll end up paying more in the long run as well as still risking losing your home.

You may be able to ask a court for more time to repay your debt. This option is often only applicable in certain circumstances. Therefore, it best to speak to a debt advisor before considering any court action. Keep copies of all correspondence such as letters and emails just in case they may be required by the court.