Debt collection and payment defaults

You may have trouble paying your bills for a variety of reasons. Changes in your life situation or health problems, for example, can affect your income and expenses. Whether your challenging situation is temporary or more long-term, remember that there are always solutions to problems with paying your bills.

If you are unable to pay your bills

If you are unable to pay your bills, take some time to review your spending and think about the best order for paying them. If you do not have enough money to pay all of them, securing your housing and employment should be your first priority. You can find tips on how to plan your finances here.

If you are having trouble paying your bills, you should inform the creditors as soon as possible. There are a variety of different solutions, and creditors are usually willing to discuss the available options with you. By thinking ahead, you can avoid debt collection and the resulting costs.

If your ability to pay has deteriorated due to illness or incapacity for work, for example, you may have the right to terminate a fixed-term contract. In such a case, you can invoke the so-called social force majeure. Read more about terminating a fixed-term contract on the website of the Finnish Competition and Consumer Authority.‍

Financial warning signals

There can be different kinds of warning signals when it comes to your finances. For example:

• You often have to postpone the invoice due date and/or ask for more time to pay your bills.
• You have to think about how you will be able to pay your bills and debts. Financial concerns may cause you stress and affect your sleep and well-being.
• You have several payment plans and they burden your finances. If you have difficulties in following your existing payment plans or you have too many of them, you do not have enough money to cover other everyday expenses.
• You feel that you do not have enough money to live on after paying your bills and debts.
• The loan principal does not decrease. The interest rate on your loan or the fees may be too high, or the repayment period may be too long.
• You take out a new loan to pay your bills, debts and living expenses.
• You must take out a loan even for small purchases. You do not have any extra money to buy a new household appliance to replace a broken one, for example.
• Paying off debts with a new debt is not a good solution, even if you were only trying to avoid a payment default entry or enforcement. It will often make things worse and will not improve your overall situation.
• You do not want to open any money-related letters, such as letters from the debt collection agency or the enforcement authorities.

If you notice any of these warning signals in your own finances, consider what kinds of changes you could make to improve your financial situation. Talking about financial matters is difficult, and many are ashamed by it. This is natural, but there is no point in delaying contacting those who can help. For financial and debt counsellors, talking about money comes naturally and it is their job to find solutions. Proactive access to financial and debt counselling can prevent financial difficulties from getting out of hand. If you need help, you can contact a financial and debt counsellor through various service channels free of charge.