It is important to remember that if your circumstances change, call or get in touch with the lender, and let them know you are having trouble making your repayments. If you fail to meet your payment commitments or breach the credit contract in some other way, the lender may be able to repossess goods that you bought on hire purchase or that you put up as security for a loan (see “Repossession” in this chapter).
Note: If you’re not able to meet your payment commitments, you may be able to negotiate another arrangement with the lender – for example, making smaller payments over a longer period. If the debt is unsecured, you may be able to apply for a debt repayment order to enable you to pay the debt back over time and to stop the lender taking court action against you (see “When you can’t pay your debts: Bankruptcy and other options” in this chapter).