Urgent debt problems · 5 min read
Received a debt collection letter? Here's what to do next
A letter from a debt collection agency doesn't mean you're in legal trouble — but it does mean it's time to act. Here's a calm, step-by-step approach.
1. Check the debt is yours
Debts are often sold to collection agencies. Check the amount, the original creditor and the account number. If you are unsure, ask the collector for a copy of the original credit agreement.
2. Check it isn't too old
In England and Wales, most unsecured debts become 'statute barred' if the creditor hasn't taken court action and you haven't paid or acknowledged the debt in writing for six years (five years in Scotland).
3. Know your rights
- Collectors must not harass you or contact you at unreasonable times
- They must not mislead you about their powers — most are not bailiffs
- They should treat you fairly if you are vulnerable or struggling
4. Make a plan
Offer what you can realistically afford after priority bills. If you have several debts, a single plan is usually better than dealing with each collector separately.
This article is general information only and may not reflect your circumstances. Rules and limits can change, so always check the details with an authorised provider before making a decision.
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