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 overwhelming the situation 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 paid on time is costly for businesses and debt collectors - and often the company has to spend time and resources to collect the money. That's why legislation allows for interest, fees, reminder fees and collection costs to be imposed on a claim - and most companies make use of it.

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 collectors have the opportunity to register you in debt registers such as the Debtor List 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 Debitor List or RKI, you risk not being able to take out a mobile subscription or take out a bank loan, for example.

Reason 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 bailiff court (or civil court) has the ability to attach your property and assets - if you choose to ignore your creditors - and fail to comply with 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 on credit later on.

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

A good dialog with your creditors (or debt collectors) is perhaps 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.