You can start to get out of debt by contacting the people you owe money to as soon as you can. Don't panic or ignore the problem. You can also get free advice from the organisations at the end of this article.
You can't ignore your debts: unopened bills won’t go away. Better to pay a small amount than nothing at all. Those you owe money to may be prepared to accept low repayments.
If you are struggling with store or credit cards stop using them.
Work out a realistic budget that covers all your income and spending. Check whether there are any benefits or tax credits you are entitled to that you are not getting.
Decide which debts take priority - like mortgage or rent - and which costs you most through penalties or higher interest rates.
Only agree to pay off debts at a rate that you can keep up - don't offer more than you can afford. If organisations won't accept your repayment offers, seek advice from the organisations at the end of this article.
Contact those who you owe money to as soon as possible. Let them know that you are having problems. Many companies will be helpful if you talk to them.
If you get a threatening letter get advice from your local Citizens Advice Bureau or trading standards service at your local council
If a debt collector calls at your home you don't have to let them in. If you want time to get advice arrange a later appointment. If a debt collector or lender harasses you contact your local Citizens Advice Bureau or trading standards service at your local council.
Check if a loan will be secured on your home. If it is and you do not keep up repayments you could lose your home. If you do not understand the terms of a loan get advice.
If you're thinking of taking out a new loan to pay off debts make sure you find out the total cost of the loan, not just the monthly repayments.
Think very carefully before borrowing more to pay off your debts. Get impartial advice and don't rush into signing anything you don't understand.
If you are thinking of using a fee-charging debt management company, then make sure you understand exactly what you are signing up to - check what fees you will be paying to a debt management company and how long it will take you to pay off your debts.
Keep copies of all letters you send and get about your debts.
Advice
contact list
Find
your local council
Debt
help from the Office of Fair Trading (external link)
National
Debtline website (external link)
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