First of all, don’t panic… but equally don’t ignore the problem as it will not go away and will get worse the longer you leave it.
Be honest with yourself…write down ALL your debts.
Deal with your priority debts first…for example, those debts which could result in you losing your home or having your gas and electricity cut off.
Use our guide to help work out a reasonable offer to repay the money you owe…Even if it seems a small amount, creditors would prefer you to pay regular small amounts than make an offer you are not able to afford to keep up.
Do not borrow money to pay off debts… get advice first as you could find matters are made worsee.g. doorstep loans have extremely high interest.
Get in touch with your creditors and everyone you owe money to… explain your difficulties and offer to come to an agreeable and affordable arrangement.
Always go to court hearings… make sure you have provided them beforehand with all the facts. The Court will use the information to help decide what instalments you should pay.
Check you are claiming all the benefits and tax credits you are entitled to… visit our benefits calculator to find out.
Always keep copies of all the letters or forms you send, complete or receive.
Tell us about your financial worries
We offer a flexible, free and impartial service providing comprehensive money management and benefit advice to help you keep your home and maximise your income. Contact our Money Advice Officer on 01773 573100 today to help you get back on your feet.
