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Do Not Ignore Letters or Notices from Lenders

Sticking your head in the sand won't make your problems disappear if you're overwhelmed by debt and behind on paying your bills. Here's what to do instead.

14 June 2022 · Managing Your Finances

Do Not Ignore Letters or Notices from Lenders

Sticking your head in the sand won't make your problems disappear if you're overwhelmed by debt and behind on paying your bills. You need to act fast and decisively instead.

Why is Ignoring Letters and Notices a Bad Idea?

Consumers should not ignore letters and notices from creditors because these communications often contain important information about outstanding debts, legal actions, or payment deadlines. Ignoring them can lead to escalated consequences, such as default judgments, garnishment (automatic deduction) from wages, or the seizure of assets.

Why You Should Act Early

Engaging with creditors early allows consumers to negotiate repayment terms or dispute inaccuracies before the situation worsens. Additionally, staying informed helps consumers avoid legal costs and damage to their credit score. By addressing these notices promptly, consumers can take control of their financial situation and avoid more serious legal or financial repercussions.

Statutory demand procedures require that a credit provider waits at least 10 business days before taking legal action, after having delivered a notice to the consumer. If a summons is issued by the court and a judgement is passed, it becomes difficult if not impossible for debt counsellors to intervene to rescind the orders.

For these reasons, you should act early. Speak to Debt Sage's experts to see what your options are.

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