This is a guest post by Sara Williams who is a debt adviser and who has her own personal blog, Debt Camel, where she writes about debt and credit ratings. Here she tells you how you can avoid bailiff problems.
In July 2021, there has been a proposal for a new system of bailiff regulation. As a debt adviser, I really hope this makes a big difference because I see too many clients with bailiff problems. But what can you do to make sure you never have to talk to a bailiff?
Tell people when you move!
If you always manage to pay your bills and debts on time, you may think you are safe… but you still need to be careful in some situations, especially where you have moved.
When you move, you need to make sure that you settle your final utility bills as follows:
- send in those final meter readings promptly;
- don’t cancel your direct debit until you are absolutely sure the final bill has been paid. Check the last bill you are paying goes up to the date you moved;
- give your old utility company the address you are moving to so any problems can be resolved.
This also applies to council tax – tell your council the date you are moving out and give them your new address. It’s best to do this by email, so you have a record of having told them.
Another common problem arises with any private parking tickets or PCN’s from your council. Make sure to tell the DVLA about your new address as soon as you move.
You might think, why can’t a creditor find your new address? Of course they could. And bailiffs manage to do this very easily… But it’s much safer to tell everyone and avoid the problem.
Otherwise the red letters and then the court papers will go to your old address and you may get a CCJ (County Court Judgment) by default. Then the first you know of it is a letter from a bailiff, with the court fees and high bailiff charges added on.
Making sure the final bills are paid will protect your credit record, as well as ensuring that you never have to talk to a bailiff or have bailiff problems.
When you have “real” debt problems, know what is a priority
When you have money problems and you can’t manage to pay everything on time, the most important thing is not to just ignore the situation.
Make sure you know what your priority debts are. For example, council tax is a priority debt and councils are also one of the fastest creditors to go to court and send round bailiffs. Rent/mortgage and car finance are obviously important as you may lose your home or have the car repossessed.
You can offer non-priority debts such as credit card, unsecured loans and catalogues lower payments. If you have lost your job and your only income is benefits, this may be just a token £1 a month.
Your creditors may not like this. However, they will be reasonable in this situation, accepting token payments and freezing interest and charges so your debts don’t get bigger. They know that many people have lost income because of coronavirus.
These companies also know that going to court for a CCJ and sending round bailiffs won’t magically mean you have more money. If you talk to your creditors and make an arrangement to pay, you are very, very unlikely to ever be taken to court for a CCJ.
Get debt advice, don’t delay
If all this seems scary, confusing or simply impossible as you don’t have enough money, then talk to a debt adviser.
The earlier you get debt advice, the more options you may have. If you try to muddle on for a few months putting all your everyday expenses on a credit card and not paying some bills, then you will have a bigger debt problem to sort out eventually.
A good debt adviser will explain your options and the pros and cons of each one. Ideally, talk to an adviser who works for a charity; they can advise on the full range of debt solutions.
If you need help with benefits as well as debts, your local Citizens Advice can help with both problems. For people who are self employed or own a small limited company, Business Debtline is a specialist debt advice service.
And if you do get a letter from a bailiff…
If your bailiff problems commence and you do get a letter, then you need to know your rights.
Read Bailiffs – do you have to let them in? What you need to know. For many debts, including council tax, CCJs and parking tickets, a bailiff cannot force entry to your house unless you have already let them in – so not opening the door and only talking on the phone is sensible.
Looking for ways to save money? Check out 25 extreme ways to save money and 20 things I don’t buy to save money and waste.
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