Handling finance is not easy for anyone, whether you are a business owner living in a penthouse or a common man doing a 9-5 job. Often, people take debts to either make a big purchase or get out of any unexpected situation. Loans are generally designed to help people with financial need. So, thinking debt completely as completely evil might not be right here. However, debt is something that you have to return in the end along with the interest. Any lender providing loans are doing business, so in the end; you will have to return the money. Failing in repaying the debt makes the borrower viable for any strict action. The lender can file a CCJ case against the borrower where he/she will have to repay the debt on the time given by the court.
What to do after a CCJ is filed against me?
If you have failed in repaying the debt and the creditor has filed a CCJ against you, then you need to address this problem as soon as possible. As this has taken the form of a legal case, you need to look for all the options available for you to get rid of this situation.
After you have received the notice of CCJ, you will have three options:
- Pay the amount as ordered by the ordered
- Change the payment term, if you really cannot afford them
- Get the CCJ cancelled if the payment is done from your side
How the CCJ payment is done?
If you have responded to the notice sent by the court, then you will be further will be asked by the court or creditor to fix the amount that you can pay. After that, you will have to pay the debt in monthly instalments. So, if any case, you don’t have enough funds with you, then you can apply for CCJ loans with no guarantor from a direct lender. You can use the debt to pay the instalments
So, as long as you will be paying the amount on time, any action that the creditor might take upon you will be limited. But, if you live on your own home, then there will be a possibility of order where the debt might be secured with your property. Apart from this, there will be no other actions.
How much payment should I offer to the creditor?
The amount that you can offer to your creditor totally depends on your current financial situation. You have to choose the amount that you can really afford. For this, see how much money you are left with at the end of the month after spending on basic expenses. If possible, taking CCJ loans can be very helpful as you can use it to clear few instalments until you get back on the track.
Try to be realistic while setting the amount of the payment. Don’t choose the amount that you cannot afford because missing the payment will not be in your option afterwards. If possible start doing freelancing to generate more income which you can simply use in making the payments. You can choose any side hustle that you think you are good at like writing, graphic designing or any other. A CCJ can affect you in numerous ways, starting with your credit history. A CCJ spot can remain in your credit report for many years if you don’t make the payments set by the court on time. Further, this will make it very difficult for you to get a debt in future