The importance of settling bad debts


How bad debts can affect your credit history

With many years of experience in the debt collection industry, our dedicated team of specialists here at Cobra Financial Solutions understand first hand that if you are experiencing financial difficulties it can be a daunting process, especially at this time of year with Christmas fast approaching. What’s more, we understand that when you are owed money it can place a huge strain on your own workforce and business outgoings and that’s why we are here to help.

Operating across the whole of the United Kingdom and working on your behalf, our debt collectors understand the urgent need to reduce your bad debts in a professional and timely manner. As such, we utilise a wide range of proven techniques to help you retrieve monies owed to you as swiftly as possible and maintain your brand reputation, when it matters the most.

But what many people fail to realise is that by not paying their bills to you on time, they are inadvertently affecting their own credit rating history in a negative way. Not only affecting their ability to get credit in the future, by failing to pay off their outstanding debts to you, businesses and sole traders alike are impacting their overall credit rating with huge financial implications, which unfortunately can take several years to rectify.

From a financial perspective, first and foremost, the importance on keeping on top of money affairs is essential- if you want to spend your time focusing on what really matters, as soon as our debt collectors make contact with you it is essential that you work together in a professional manner to resolve the outstanding debts on your account in as swiftly and as hassle free as possible.

Burying your head in the sand and hoping that tomorrow your financial problems will no longer exist is not an advisable route. As specialist debt collectors, our team work with clients to retrieve outstanding debts and by working together, we are able to professionally manage your debt collections and settle your accounts to avoid further implications.

If you owe money to a business, when it comes to your credit history, you must take note as it can impact your financial applications and opportunities for the future. Unfortunately, there is no getting away from the fact your bad debts will negatively affect your credit history, however it is also important to remember that missing payments is not best practice or advisable either.

Each comes with their own negative associations but if a lender issues a default on you, both will have the same negative effect on your credit rate history and this needs addressing as soon as possible. In essence, as soon as you break the original agreement placed with a lender, your credit history will be affected and this note will remain flagged on your account for six years from the date that they start.

Of course, staying on top of your payments is essential if you want to avoid significantly denting your credit history. However, if you are already experiencing financial difficulties, collaboratively working with our team of specialist debt collectors in a co-operative manner to help recover your debts in a professional and hassle free way is essential to avoid further restrictions and charges.

While the subject of debt collection is sometimes seen in a negative light, in reality not everything is doom and gloom- as soon as you’ve paid off your debts, you can begin to rebuild your credit rating back up. How quickly this happens depends on the individual lender, how you apply for credit and over what time frame. While it is possible you’ll be able to get credit moving forwards, it will be at a more expensive rate of interest, until you’ve built up a good credit rating score. This will take time unfortunately and so the best advice is to ensure you stay on the top of your payments and pay our team of specialist debt collectors in a timely and professional manner when they’ve made contact with you.

By doing so, you will reduce the risk of negatively affecting your credit rating across time and give yourself a better chance of getting additional credit cards, a mortgage and a green light in terms of your financial stability. With credit history being a fragile thing, it really is so important to stay on top of your financial matters in order to reduce additional penalties and further charges by dealing with your financial difficulties in a responsible and positive manner.

So, if you owe money to a business and are being contacted by one of our dedicated debt collectors and need to know more about the ways in which we operate, do not delay- get in touch as soon as possible and discuss your individual circumstances with our team of experts.

And of course, if you are experiencing difficulties with your accounts and require the help of a professional, regulated debt collection, do not hesitate to get in touch with Cobra Financial Solutions today.