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What happens if you fail to pay a bill?
If you spent your money on something that was more fun, for example. Or because you were simply strapped for cash. One thing is certain: Late payment will cost you. And it can be really embarrassing.

Bills do not disappear into thin air

There are clear rules about what may happen if someone fails to pay a bill. The creditor – that is the person or company to which you owe money – will take the following steps.
If a creditor does not receive their money by the due date, they will send you a “reminder”. They will ask you to pay the amount due without delay.
In addition, you will have to pay a reminder fee. If you still fail to pay, many companies will send you a second reminder. This will come with a higher reminder fee, and in many cases default interest will have been added to the sum due.
Finally, the creditor will ask you to pay the full amount due, plus all costs, fees and interest. You have defaulted on your obligation to pay, and the creditor may now sue you in court. In theory, a creditor may file a lawsuit without sending reminders first, but usually the creditor will commission a collection agency to collect the due amount from the debtor.
Collection agencies are companies that specialize in collecting overdue payments. This may happen in different ways: Some will start by writing a letter, others will send an employee to your home or workplace right away. You will have to pay the cost of the collection agency on top of everything else – so your debt keeps growing.
If you still fail to pay, the situation will get really serious. The creditor will now hire a lawyer who will file a petition for a court order to make you pay your debt. On top of everything you already owe, you will now have to pay the lawyer’s fees and the cost of the court proceedings.
The court may give the creditor the right to “attach”, that is, to seize your property and income. This is called an execution order. When your income is attached, your employer has to pay most of your wages or salary to your creditor, leaving you with a subsistence-level minimum. Moreover, your property – computer, TV set, bicycle, car, etc. – may be seized and sold at auction. The cost of the auction process has to be borne by you.

How do I prevent problems?

Pay your bills on time.
Check whether standing orders are correctly processed by your bank.
Inform your creditors if you anticipate that you may have trouble paying.
If you are in trouble, talk to someone you trust. If the situation is really bad, go to a debt advice centre.
Pay now or what?

What Dr. Dr. Money says

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