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You should only be dealing with other debts once all repayments are in place for your priority debts. Make sure you have completed Step 4 first.
Work out if you have any money left once you have paid your outgoings and the payments for your priority debts.
You need to know the exact amounts you owe each creditor. If you are not sure then ask them. You can use sample letter 1 (holding letter) to do this.
If you have nothing left say so. Send each person you owe money to a copy of your personal budget and a letter to explain the situation. You can use sample letter 3 (nil offer) to help you.
If you have some money left you will need to divide it among the people you owe money to. Send them a letter (see sample letter 4; offer for other debts) and remember if you know the reason why you are in debt, it will help to tell your creditors this by writing the details on an extra sheet and including it with your letter. Also send a copy of your personal budget showing the offer of repayment. The fairest way to work out repayments is to give each creditor a fair share depending on how much you owe them. A fact sheet called "Calculating your offers" is contained in this pack to help you do this.
If your offer is not accepted, start making payments anyway. Contact your creditor again and ask them to reconsider do not give up.
Even if a creditor has taken you to the County Court you should not include this with your priority debts, it is still an 'other debt'
If the creditor refuses to stop interest charges you should ask again and try to persuade them by saying the payments are dependent on them doing this.Whether you make an offer or not, every time your circumstances change you must inform your creditors. It is likely that your creditors will ask you to contact them at least every 6 months so that they are fully aware of your situation. Always keep copies of letters that you send.
Harassment from creditors; please remember that creditors are allowed to remind you to make payments to them but they must do this in a reasonable manner. If you think that a creditor is being unreasonable, it could be classed as harassment and you should contact the police or the trading standards department at your local council. Examples of harassment include attempts to contact you at work or contacting your employer, phoning you all the time at home or ringing late at night. Some creditors will try and make you think that they can put you in prison or take away your goods but only the courts have the power to do this and only after you have had opportunities to make arrangements to clear the debt.
Remember to seek help at any time if you have problems or are not sure what to do.