The following do’s & don’ts may prove to be helpful when negotiating with creditors / lenders, you may wish to read our 5 step DIY guide first.

Debtwizard's list of do's and don'ts.

Do

• Communicate with your creditors as soon a possible and explain what the situation is.
• Whenever possible try to write to them rather than telephone so that there is a written record. 
• If you do use the telephone keep a record of what was said and to whom and when
• Keep copies of your letters, some local shops and libraries have photocopying facilities.
• Remember you should pay your priority creditors first before offering payment to your unsecured liabilities.
• If you do not have surplus income at this stage write and request that creditors suspend any further action and freeze interest on your liabilities for a period such as 3 months after which it can be reviewed.

• Pay your priority creditors before your unsecured debts, such as mortgage, rent, secured, loans, and utilities. More on this here.
• Reply to letters from creditors promptly and enclose any documentation that supports your case, such as Doctor's certificate if signed off work, redundancy letter etc.
• Keep copies of all correspondence, including your letters to creditors, their letters to you and all your credit card and loan statements plus any financial statements you may have. These statements are sometimes referred to as a statement of affairs or a statement of means.
• Reply to any court summonses promptly.
• Attend court hearings with all your documentation and if possible have someone who is qualified to represent you.
• Above all be realistic and accept that there is a problem and it will only go away if you do something about it, either by dealing with it yourself or with the help of the agencies such as those illustrated on this site, click here for details. We can also help you on 0845 225 0025.

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