In October, the UK Government agreed with campaigners that the wording used in letters chasing people for debts must be changed to be less threatening.
A decision was made that bold lettering would be reduced, legal terms would be simplified into more straightforward language and people would be steered towards debt support services.
The harm caused by distressing debt letters was highlighted by a charity set up by consumer champion, Martin Lewis, which had been pushing for an overhaul for some time.
Research by the Money and Mental Health Policy Institute, of which the financial journalist is founder and chairman, discovered such letters can have a catastrophic impact on people with debt problems and said at the time “it’s no exaggeration that this change could save lives.”
If you’re struggling to cope financially this December, MoneySavingExpert.com has a comprehensive guide to help you take control of your debt.
The first place to seek help is from a charity or non-profit debt counselling organisation - only have a one-to-one session with someone paid to help you, not to make money out of you.
MoneySavingExpert explains: “These non-profit agencies are also the ideal people to go to if you're being harassed and bullied for payments by debt collection agencies.”
The agreement between the UK Government and Credit Services Association, the body that represents debt collecting agents, gives new powers that guarantee debt collectors won't contact you for at least 30 days, provided you've sought debt help or can show you are trying to repay your debts using a self-help tool, such as the Money Map, which was recently launched by Citizens Advice Scotland.
MoneySavingExpert added: “The debt counselling service will inform collectors, which will then give you a month's breathing space to get yourself on a better footing.”
Three organisations to contact for debt advice
Citizens Advice Scotland
Full debt and consumer advice service. Many bureaux have specialist caseworkers to deal with any type of debt, including repossessions and negotiation with creditors.
For more information visit the Citizens Advice Scotland website here.
StepChange Debt Charity
A full debt help service is available across the UK. Online support is also available via its debt advice tool where you can create a budget and get a personal action plan with practical next steps.
For more information visit the StepChange website here.
National Debtline
National Debtline provides free advice and resources to help people deal with their debts. Advice is available over the phone, online and via webchat.
For more information visit the National Debtline website here.
To read the full Debt help guide, visit the MoneySavingExpert.com website here.
