Mobile bills spiral thousands into debt

Published: 13/11/2013

Nowadays if you forget your mobile phone you feel as if your right arm has been chopped off! Not only have they revolutionised the way we communicate, our phones now mean we can do just about anything at the touch of a button.

However all this technology comes at a cost with phone arrears having risen 261% in the last five years. Currently 15% of those with mobile phone debt owe thousands of pounds with smartphone contracts seen as the primary culprit.

For a family of four to each own a smartphone it would cost in the region of £140 a month. This very quickly stacks up to £1680 a year before the cost of apps and data roaming is factored in. Many apps such as the increasingly popular Candy Crush, have been criticised for their in-app purchase functionality where users are able to ‘top up’ lives and buy ‘power ups’. Whilst only costing pennies each time these purchases can easily tot up, leaving many with hundreds and even thousands of pounds worth of charges.

Mobile phone contracts are just one of the many outgoings we have - from mortgage repayments to loan and credit cards, store cards and even increasing energy bills and, when added together, these expenses can quickly culminate into a considerable debt which could end up resulting in a statutory demand.

A statutory demand is a formal demand made by a creditor (e.g. a bank, credit card provider or a debt collection agency) for a payment of debt of more than £750. Upon receiving a statutory demand you have just 18 days from the date it was ‘served’ to either reach an agreement with the creditor or apply to set it aside. If after 21 days you have not done anything the creditor has the right to apply to the court to declare you bankrupt.

Understandably a terrifying situation, in certain circumstances you may be able to set aside the demand or have the debt reduced.

At Goldsmith Williams we have a specialist team of lawyers who are able to assist you with your statutory demand. Working on a no win no fee basis, we are highly experienced in helping customers resolve this distressing situation by either setting the debt aside completely or negotiating a reduction.

If you have received a statutory demand you have just 18 days from the date in which it was served to make an application to have it set aside so it is essential you contact our team immediately.

Content correct at time of publication.