Contacting your creditors
If you give Crosslight authority to contact your creditors - for example to get more information about your debts, or to make a proposal - the creditor may decide to close or freeze any active accounts you have with them, for example an active credit card, overdraft or store account. You should think carefully about this before Crosslight contacts them, and should speak to your adviser if you have any questions or conerns.

Your Credit Rating
In almost all cases, the options contained above will affect your credit rating and may show on your credit record for up to 6 years. This could make running a business, getting a mortgage, renting somewhere to live, or getting credit, more difficult.

Priority Debts
Whenever we give advice about your debts, we will treat 'Priority Debts' differently to other types of debt and will always advise that these types of debts are repaid first, even if that means that other types of debts cannot be repaid as fast/at the same time. Priority Debts are things like Rent/Mortgage, Council Tax, Utilities, Court Fines, Tax debts, Benefit Overpayments, and Fines.

Ongoing Payments for your essential bills
Even if you have arrears, it is important that you continue to make payments for your ongoing rent and/or mortgage, council tax, gas, and electricity in particular. These are priority items and it is very important that you make sure they are paid on time and in full – paying different amounts every so often is not acceptable, especially when it comes to your rent (and may result in possible eviction proceedings being started).

Stopping or Reducing Your Payments
The people you owe money to are not obliged to accept reduced payments or to freeze interest if it is being applied. Stopping or reducing payments to them may therefore result in the debt taking longer to repay or the creditor taking legal action against you. It will also likely result in any active credit facility being withdrawn and your account being closed or frozen.

Contact from creditors
If an arrangement is agreed with your creditors, or you enter a formal insolvency solution (e.g. a DRO or Bankruptcy) 'demand' letters should gradually stop, but this can take six to eight weeks. You will however continue to receive statements from time to time - they are obliged to send you these so that you can see how much you owe.

Your Employment
Using any of the options could effect your employment. Depending on the terms of your employment, you may need to disclose your situation to your employer, particularly if you enter into any form of insolvency (e.g. a DRO or Bankruptcy).

Right of Secured Creditors
None of the options will have an affect on the rights of any secured creditors. If someone you owe money to has taken security over your home or other property (for example a mortgage, secured loan, or certain Hire Purchase agreements), they will still have the right to take possession of your home or goods if you do not repay the debt.

Home Owners
Most credit card debts, loans and store cards etc. are unsecured, meaning the creditor cannot automatically claim entitlement to your home or property if you fail to make payments. However if you are a home-owner, in some circumstances a creditor may be able to ask the court to secure the debt on your home through what’s known as a charging order.