Got a letter about debt and worried about it?

Getting a letter about debt can feel overwhelming. It’s natural to want to hide it away and hope it goes away on its own. 

But here’s the truth: ignoring a debt letter won’t make it disappear. In fact, the earlier you face it, the more options you’ll have and the less stressful it’s likely to be. 

Don’t worry, though. We’re here to help you understand what these letters mean, what to do next, and how to get support. You're not alone. Millions of people in the UK are in the same boat. 

Why you might be getting debt letters 

If you’ve missed payments on things like credit cards, loans, council tax, energy bills or buy now, pay later, the company you owe money to (your creditor) might write to you asking for payment. 

The good news? Many of these letters are just the start of the process. They’re often a prompt to act before things move further and you usually still have time to take control. 

Common types of debt letters in the UK 

Let’s break down the main types of letters you might receive: 

1. Reminder or arrears notice 

Usually sent by the original creditor. It’s a nudge to say you’ve missed a payment. 
What it means: You’re behind, but this is your chance to catch up or ask for help before further action is taken. 

2. Default notice (under the Consumer Credit Act 1974) 

You’ll get this if you’ve missed payments on credit regulated by the Consumer Credit Act (like credit cards, personal loans or store cards). 
Legal requirement: Creditors must send this before they can start court proceedings. 
You’ll usually have 14 days to take action from the date on the letter. 
Key wording to look for: “This is a default notice served under section 87(1) of the Consumer Credit Act 1974.” 

3. Letter before action (LBA) 

Usually sent by a solicitor or debt collection agency. 
What it means: The creditor is warning they might start court proceedings unless the debt is resolved. You still have time to respond and come to an arrangement. 

4. Letter of claim (steps to take before starting legal action)

If you're an individual (not a business), the creditor must send this before applying to court. 
It includes: 

• A reply form and financial statement 

• Details of the debt 

• 30 days to respond 

Why it matters: This is your opportunity to explain your situation, dispute the debt, or ask for more time. If you ignore it, court action could follow. 

5. County court claim form 

This means court proceedings have already been started. 
You’ll have 14 days to respond, or 28 days if you send back an acknowledgement of receipt. 
What to know: This stage is more serious, but it’s not too late. You may still be able to: 

• Pay in full 

• Agree a payment plan 

• Dispute the debt if something isn’t right 
  If you ignore it, the court could issue a CCJ (County Court Judgment). 

What happens if you ignore a debt letter? 

Letting debt letters pile up can lead to more stress and fewer options. Here's what might happen if you don’t take action: 

6 steps to take when you get a debt letter 

1. Open it – don’t ignore it. Take a deep breath and stay in control. 

2. Check the details – is it in your name? Do you recognise the debt? If not, you can dispute it. 

3. Find out if the debt is statute-barred 
   In England, Wales and Northern Ireland, many debts become ‘statute-barred’ after 6 years (5 in Scotland) if: 

• You haven’t made a payment 

• You haven’t acknowledged the debt in writing 

• No court action has been taken 

4. Don’t pay anything yet – making a payment or acknowledging the debt in writing could restart the time limit. Get advice first. 

5. Get debt help – if you're struggling with one debt, chances are there are others. Speak to us - we’re here to guide you through every step. 

6. Reply within the deadline – especially if you get a letter of claim or court documents. Missing the deadline could lead to a CCJ by default. Find out more about CCJs here: https://www.moneywellness.com/debt-advice/debt-collection/ccj 

Fast facts 

• Over 8 million people in the UK are struggling with problem debt (Money and Pensions Service, 2023) 

• In 2024, 1 in 4 adults missed or defaulted on a bill or credit repayment (FCA Financial Lives Survey) 

• The average unsecured debt per UK adult is over £3,900 (The Money Charity, 2024) 

• Around 600,000 CCJs are issued in England and Wales every year