Dealing with debt

Almost everyone has some form of debt, be it money owed on a credit card, a bank loan or overdraft, or a mortgage. But if you’re having trouble paying your bills or loan repayments, you should get help as soon as possible. Here are some useful tips to help you.

Take stock >

Can you cover your bills, loan repayments or other debts with your income, or are they becoming unmanageable?

Work out the scale of the problem >

Make a list of your debts and prioritise them.

Draw up a realistic budget >

See if there’s anything you can cut back on before working out how much of your debts you can afford to pay back.

Talk to the people you owe money to >

It’s a good idea to talk to the people you owe money to (your creditors) as they may be able to help you. Don’t ignore the problem.

Repayment options >

If you can’t afford to pay straight away, there may be some options available.

Bailiffs and debt collectors >

Find out what happens if people come knocking on your door to collect money you owe.

Get help >

There are lots of organisations that offer free debt advice and can help you work out a plan of action.

Stay in control >

Once your debt is under control, try to review your situation regularly to avoid it happening again.

ref: moneymadeclear.fsa.gov.uk/guides/help/dealing_with_debt.html