A debt can be both a loan that you have taken and also a bill to be paid, such as rent or phone bill. It can also be an installment purchase where you have bought a product and split up the payment on several occasions. Debt is part of everyday life and we all have different types of debts that need to be paid on time.
For anyone who owns a home, there is probably a home loan, which is one of the greater costs in a normal private economy. Whether it is a debt that is because you have borrowed money or if you have used a service (which most other bills are – insurance, internet, TV, subscriptions, etc.) it is important that you pay them by agreement. You can also search for fast loans online and as information; PDNET is a new direct lender in the UK and one of the best. Some big businesses start with small loans. You can see profiles of some of them at thesiliconreview.
Not paying on time means extra costs
Not paying a bill or debt when you mean, in principle means that you violate the agreement you have with the other party. It is rarely a good idea not to pay in time because this causes different bad things. Firstly, there is a great risk that you will receive a reminder and reminder fee. A reminder fee is also the most common fee. The next step may be that you have to pay a penalty interest, which is a certain percentage of the amount you owe.
If you do not pay your debt when you have received a reminder, the creditor may also send out a collection claim or the case may have been forwarded to a debt collection company which then sends out a payment card to you. There may also be an extra fee included.
Moreover, it is not entirely certain that you will receive a reminder at all before but sometimes it can go directly to debt collection. This may not feel quite nice, but you must be careful to read the agreement so that you know what is valid, because there are no rules that say that a creditor must send one. It is basically always your responsibility to pay a bill.
If you pay your debt when you receive a reminder or when the debt collection claim comes, it probably cost you a little more than if you had paid your debt directly. But at least you do not want the case to pass on to the Enforcement Authority. It is the next step if you still do not pay.
When you do not pay a debt, an application for a payment order is sent to the court and when this has been established, a letter is sent to you. You have the opportunity to dispute the debt if, for example, you have already paid the money or if there is something else that is wrong, for example, you do not consider yourself obliged to pay anything. It is important to inform them that you do not consider yourself to have any debt as quickly as possible, if so.