Fighting Debt - a guide to dealing with debt

2) LISTING DEBTS - what do I owe?

Knowing the amount that creditors / debt agencies claim you owe can sometimes be confusing. You could receive a letter from a creditor saying you owe x amount, and then receive a letter shortly where further amounts have been added without you understanding why or what it relates to.

A good start is to create a list similar to the Debt Planner, but this time list each Creditor followed by the Debt Agency collecting the amount. If you receive notification of a new amount, you will be able to compare what was previously advised of. This will also help you keep a record of all activity.

Creditors, Debt Agencies and Bailiffs may add charges to the original debt. Some of these could be classed as unreasonable and many consumers are disputing these type of additional costs on amounts owed.

Charges / fees added may be for items such as reminder letters sent to you, phone calls made, solicitors fees, etc. If you believe an amount have been unfairly added to the outstanding balance then you may wish to dispute the amount. For this, first write to the creditor (see template letters). There is no guarantee that charges will be removed but there is certainly nothing to be lost fighting unfair charges.I have created the below to keep a record of debts and all details of corrospondence. I found it helps me keep a track of what I am waiting for and need to action. This also can help if the Debt Agency 'forget' what you asked for which unfortunately seems to happen. A lot of their phone calls made are from automated diallers so don't be surprised to receive demanding calls even if the next action is on them. Simply look at your list, remind them what you are waiting for and end the call.

IMPORTANT

Do not automatically believe that anything agreed in a phone conversation with a debt collector / bailiff has been set up. Get everything agreed sent to you in writing. Some debt collectors have a nasty habit of 'forgetting' previous agreed offers and might deny the conversation took place. Having everything in writing will confirm what was arranged. It is essentially your proof of what was agreed