Had A Final Demand Letter? Don’t Ignore It!


We’ve all seen the TV adverts when a final demand letter drops through the letter box with a giant thud and sweat starts rolling down the brow of the householder. As cheesy as these adverts might be, getting a final demand letter from a lender can be daunting, not to mention stressful! People deal with stress in many different ways but one of the most common coping mechanisms we employ is to try and ignore the problem and bury our head in the sand, even to the extreme of not opening a final demand letter. When it comes to a final demand letter though the worst thing you can possibly do is ignore it!

Bury Your Head in The Sand & You’ll Drown!

Have you ever taken a trip to the beach and unexpectedly been caught out by an incoming tide? Do you recall the feelings of panic and loss of control as the ocean closed in on you?

Debt can be just like that ocean. It can catch you unaware, by surprise and leave you feeling like you have no control over the situation. In our Ebook 10 Top Tips for Paying Off Debt*, we talk about how people often tend to underestimate the amount of debt they are actually in, until the situation begins to spiral out of control that is.

The truth is that you do have a level of control over the outcome but it all depends on how you react to the situation you’ve found yourself in. So how would you react if the ocean was closing in on you? Would you bury your head in the sand?

I know this sounds like a ridiculous suggestion but when you apply this scenario to debt, this is what some of us do. Receiving a final demand letter or even several final demand letters is proof that the ocean of debt you’ve found yourself in could be about to engulf you. Burying your head in the sand isn’t going to make the problem go away, in fact if you bury your head in the sand then you will almost certainly drown!

Do What You Can To Get To Safety

In the last article of this debt help mini series we mentioned that UK lenders will try and work with you to resolve your problems, but only as long as you are willing to do what you can to pay back your debt and get back on a safe financial footing. If you receive a final demand letter, get on the phone to your lender and show your willingness to work your way out of the problem. This could involve making a token payment of a few pounds a month or whatever you can afford. There are many options a lender can explore with you to resolve your debt problem but you have to talk to your lender to be able to explore them!

Alert A Lifeguard

If after trying to escape the water you are still unable to get to safety, you need to alert a lifeguard!

If you’ve done your utmost to work with your lender but are still finding a final demand letter to be a regular occurrence, you should alert a financial lifeguard by speaking to one of the free government debt advice services that we have available in the UK. A list of these organisations and their contact details can be found on this page.

Whatever you do, don’t ignore a final demand letter. If you ignore a final demand letter you are giving a lender the ammunition they need to take further legal action against you, ruining your credit report for the next 6 years. You might even find that you could lose your home if a lender tries to place a charging order on your property or if you begin to fall behind with your mortgage repayments.

In the UK we have a lot of legal legislation that ensures lenders have to do everything that is reasonably possible to help you to deal with your arrears, but only if you show that you are willing to do your part in attempting to repay your debt.

6 Responses to Had A Final Demand Letter? Don’t Ignore It!

  1. Banks in the UK will work with you and it’s very rare they will come in and kick you out as long as you come up with a game plan.They would never see their money back with a bank repossession. I had a mortgage company offer me a payment holiday up to 6 months on my last house in the UK. I didn’t need to take that but it will help those who need to save up money to get back on track. Not so much here that’s for sure although you may find the odd place that is willing to work with you otherwise they just send it to the credit bureau and you get a note on your credit report. Great post mate. Mr.CBB

  2. So incredibly true about our desire to just IGNORE IT! It’s the easiest but worst possible solution. Better to be aware and repair.

  3. AverageJoe says:

    That’s something that’s universal: communicate. If you don’t communicate, you’re exactly right: the wrong outcome will occur. Good piece.

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