Debt is a part of modern life, and something that is not easy to avoid. Attitudes towards debt have changed considerably since the end of the second world war. Back then incurring unsecured debt was very much frowned upon. Whilst secured debt such as a mortgage was acceptable, to borrow money in order to purchase luxuries was considered the way to ruin. How times have changed! Nowadays debt is encouraged even by the government. Modern consumer society could not function without it, and judicious use of debt has been essential in the creation of the levels of prosperity we enjoy currently.
The troubles begin when, for one reason or another, debts cannot be repaid. This may happen to a country as exemplified recently by Iceland, to organisations, for instance the collapse of Northern Rock and General Motors, and to individuals. In fact the number of individuals finding themselves in this position is increasing rapidly.
When organisations and individuals stop repaying their debts as originally agreed, then the often next step is for the creditors to call in the debt collectors. If this should happen to you, then before you do anything else you should consider obtaining debt advice.
Debt collectors use a range of tactics in order to recover money for their clients, and many people find that dealing with their constant letters and phone calls is extremely stressful. Despite tight regulation on the actions that debt recovery companies are allowed, these organisations often use a variety of tricks in order to circumvent them.
For instance, they may attempt to increase the pressure on the debtor by contacting him or her at work and insisting on discussing the situation in front of work colleagues thus creating a highly embarrassing situation. Sometimes they might contact debtors late in the evening and make frequent calls. It has even been known for debt collectors to purposely contact neighbours of the debtor, again with the aim of creating embarrassment. These kinds of activities are against the law, and should be reported to the Credit Services Association.
Ultimately debts must be repaid, but there is no reason to allow oneself to be subjected to these types of practices.
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Paul Robgher writes for
debt-free.org.uk and takes great pride in helping people to be
debt free
