If you take no action to address debts you owe then your creditors (the companies you owe money to) will start taking steps to try and recover this from you. Very often this will start in the form of phone calls and letters asking you to contact them to try and arrange repayment with them.
If you do not respond they will usually continue to write and phone you, sometimes a few times a day. They may also ask a debt collection agency or lawyers to contact you to try and arrange payment. Many people find this stressful and repeated contact can make you feel anxious. We recommend that you obtain advice from a money adviser and act as soon as possible.
The Financial Conduct Authority (FCA) have strict guidelines that creditors should follow when contacting you and they should only use reasonable steps to get back debt owed. If you feel you are being contacted excessively by your creditors or they are asking you to take unreasonable steps to deal with the debt you owe it may be deemed as harassment which is not allowed.
If you continue to take no action then some creditors may look to take legal action to recover what is owed to you and this usually takes the form of court action.
Depending on the level of debt owed your creditor may take action to sequestrate you (declare you bankrupt) which could potentially put at risk your assets including your home.
Some creditors for some types of debts (usually government bodies or local authorities) can take steps to recover what is owed to them without the need to involve the courts. You should be aware that these types of creditors may act a lot quicker to recover what is owed to them as a result of these powers.
* Direct Earnings Attachment (DEA) (DWP/HMRC recovery of overpaid benefits from earnings)
* Summary Warrant (Local authority for non payment of council tax)