It is crucial that you work on consolidating your debts and avoid getting a bad credit rating, if at all possible. The consequences of a failure to keep up repayments either on your mortgage, your car, or personal loan can quickly land you in court and this is a situation best avoided.

You need to be aware of the likely outcomes once you are subpoenaed. Any weakness in your case such as failure to tackle debts early or any other attempts at avoiding to face up to your responsibility will be badly perceived by the court. It is in your interest to keep on top of your financial affairs and act responsibly; for example, do not overspend on unnecessary items as this will ultimately land you in court. Prevention is always better than cure.

Should you end up faced with an impossible situation, with debts you simply cannot repay, do not ignore them. It is imperative that you avoid getting yourself in a situation where you end up facing a courtroom. Look to debt consolidation rather than battling alone. Aim to secure your position in the first instance and to do this, you need to face up to your difficulties.

If you are a homeowner, one possibility might be to sell your home. This is better than to face repossession and ultimately will ensure you protect your credit rating for the future. You could inquire about combining all your debts and renegotiating repayment terms. In some instances, mortgage companies can help you with this as it is ultimately not in their interest to lose customers.

Remember also that as stressing as being in debt is, you will be under much more pressure once your details are sold on to debt collection agencies. You should endeavor to avoid getting to that stage at any cost as their agents are often ruthless and will resort to any means – even some dodgy and illegal practices – to secure repayments. It is not unknown for debt collection agencies to harass customers by phone or personal visits in order to increase pressure.

You should be aware that there are laws designed to give you some degree of protection. Unwelcome visits before and after certain parts of the day are not allowed. Verbal threats of court actions are not allowed either. These constitute harassment and if you know the law you will be able to take the action you need to consolidate your debt without falling prey to illegal practices.