Credit debts are usually classed as non-priority debts. This means the action that creditors can take against you to recover their money is usually less severe than for priority debts. For instance, you don't usually lose your home or risk imprisonment if you can't pay back a credit debt. However, some non-priority creditors may take court action against you and, if you are a homeowner, this could result in a charge being put on your home.
Types of credit debt include bank loans, credit cards, overdrafts, store cards, catalogues, other debts to banks, hire purchase agreements, conditional sale agreements, interest free credit, bill of sale, debts to pawnbrokers, debts to individuals etc.
Tips for dealing with credit debts
- Most creditors (the people you owe money to) will accept a low repayment offer if it is all you can afford
- Ask for any interest to be frozen on your account and any administration charges to be waived
- Check your credit agreement
- Consider changing your account if your bank is taking money from your current account to repay a debt such as a credit card
- Deal with your credit debts after you have sorted out your priority debts
- Most credit debts and collectors are regulated by the financial ombudsman service. If you have a complaint about a debt collector contact them.
Information on other websites
National debtline
Has detailed information about credit debts within its debt self-help pack. Also find information about Credit Reference Agencies and Hire Purchase debt.
Adviceguide from Citizens Advice
General information about credit
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Information Provider:
Manchester Advice
Date Written:
4 April 2005
Date Reviewed:
4 November 2008
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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