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Contact your creditors - it pays off - MyCollectia - Tips and advice
Sebastian S.
Jun 2, 2023

Contact your creditors - it pays off

For many people, finances are a difficult subject - and for many Danes, it can also be an almost unmanageable subject if the bills pile up and payment of them is not possible.

There are many reasons for poor finances: lack of a job, illness, wrong priorities, unforeseen expenses and much, much more.

Whatever the cause of a bad economy, it is important that the situation is addressed - no matter how unmanageable it feels.

In this post, we highlight the consequences of ignoring your creditors - and why you should contact your creditors, lawyers and debt collection agencies - who often send debt collection letters if you don't pay your bills on time.

Reason No 1: It's expensive not to

Almost regardless of whether your unpaid bills are from a bank, a private company or a debt collection agency - one thing is certain: ignoring them is costly.

Not getting their money on time is costly for businesses and debt collection companies - and often the company has to spend time and resources trying to recover the money. That's why the law allows for interest, fees, reminder fees and collection costs to be added to a claim - and most businesses take advantage of this.

For example, if you have a claim of just a few hundred euros - over time it could easily grow to several thousand euros.

Reason #2: The debtor list and RKI (Experian) are an option

If you ignore your bills, companies and debt collection agencies can register you in debt registers such as Debitorlisten and RKI (Experian) as a bad payer.

Having a payment remark in a debt register can have far-reaching consequences for your finances. If you are listed in the Debtorlisten or RKI, you risk, for example, not being able to take out a mobile phone subscription or take out a loan from the bank.

Reason No 3: The bailiff court

If you choose to ignore all letters from a creditor, or a debt collection agency - one of the last options is to go to court.

The enforcement court (or civil court) has the power to seize your property and assets - if you choose to ignore your creditors - and do not respect any payment agreements.

Reason #4: You risk the company not wanting to do business with you

If you do business with a company and then don't pay the bill - you run the risk that the company will no longer want to do business with you - or close the possibility for you to pay later on credit.

If your company has unique products, you run the risk that they may be difficult to source elsewhere.

Reason #5: Get in touch - most companies and debt collection agencies want to talk

As a debtor, it can be very difficult to keep track of your finances, and especially to make the necessary discussions about them.

Therefore, many debtors unfortunately also choose to completely, or partially, ignore their creditors - and choose not to enter into a dialog about their debts.

Talking to your creditors (or a debt collection agency) may be one of the best solutions when you can't pay your invoices.

Whether you are able to pay or not - you should ALWAYS engage in a dialog. Most creditors (and debt collection companies) will understand and accept that you are currently unable to pay all or part of a claim - and are often willing to grant a grace period, reduce the debt or write down any fees to move forward.

Remember, there is no embarrassment or shame in being open about your financial situation, so make sure you talk about it.