Can creditors force me to pay my debts?

In most cases, the people you owe cannot force you to pay more than you can afford. But, creditors can start court action to get you to pay what you owe. You may need to think about making reduced payments if you are struggling to pay your debts.

Making reduced payments has consequences.

The people you owe could:

• Ask you to bring your account up to date
• Add extra charges and interest
• Begin action to reclaim the debt

It will also affect your credit file.

Your account will default if you keep making reduced payments.

Need help with your debts? 

When could I be ‘forced’ to pay my debts?

There are some times when reduced payments are not an option.

• You must keep paying the debt at the rate the creditor decides
• Even if you make lower payments to other debts

Debts like this are known as priority debts. You must pay them.

There are two reasons why you might be "forced" to pay a certain amount:

1. They have legal powers to decide the rate you pay them at

This includes government debts.

These can be taken from your wages or benefits at a fixed rate. Like:

• Taxes
• Fines
• Council tax

The people you owe can also take action if you do not pay a CCJ or decree.

They can ask the court to take money from you using:

• An attachment of earnings, or
• Earnings arrestment

2. The consequences of reduced payments are too serious

Some creditors can take further action if you do not pay what they want.

Common examples of this are:

• Rent arrears, or
• Mortgage arrears

You could lose your home if you pay less to these.

Not paying utilities like energy and water bills could lead to you losing essential services.

Not paying hire purchase or logbook loan debts could lead to you losing your car or other essential goods.

How can we help?

We can help you work out what to pay if you:

• Are finding it hard to pay your debts, and
• Think you may need to make reduced payments

We can also help you:

• Put together a household budget
• Work out how much you can afford to pay to all of your debts
• Find the best way to deal with them

Take two minutes to answer a few simple questions, so we can understand the best way to support you.