The Ostrich approach does not work when dealing with debt. Problems will get worse if you do nothing. Burying your head in the sand will only end up with more costly action being taken. Engage with the creditor as soon as you can no longer meet repayments, don’t wait until the matter is passed over to an collection agency or law firm. Engage; be transparent about your means and honest about your ability to pay.
Generally, the initial letter from a debt collection firm will encourage you to make full payment or to contact them with a proposal. The letter will also generally set out what action will occur if you ignore it and will either threaten legal court proceedings or further contact, possibly a visit to your home. It is important to make contact at that stage and have all your facts and figures prepared. If you dispute the figures, explain why; if you need time to pay, set out your income and expenditure. If you show you have limited resources, this will be taken into account in agreeing a plan. Payment cannot be demanded in a manner calculated to humiliate, alarm or distress you.