Dealing with Debt
Consumer debt is at an all time high. Debt problems will affect most of us at some time in our lives and there are some easy steps you can take to manage your debt problems:
1. Do not bury your head in the sand. The debt will not go away and by simply ignoring it you will only make matters worse and potentially increase your indebtedness.
2. Act promptly and talk with your creditors. Most creditors will be sympathetic towards your situtation and may well be willing to agree to some form of affordable repayment scheme. It is important that you keep them or any agency acting on their behalf informed of your circumstances and difficulties.
3. Take advice or confide in someone. There are many sources of free debt advice and agencies who will help manage your debts free of charge. We have included useful web links and telephone numbers below.
4. Prioritise your debts and ensure that you deal with debts that could result in the loss of your home first. These will include mortgage repayments and Council Tax arrears.
5. Review your credit card and store card interest rates. Clear the arrears on the card with the highest interest rate first or, where possible, switch your balance to a credit card which charges a lower rate of interest.
6. Avoid the use of consolidation loans where possible. The interest rates tend to be higher than normal High Street rates and they are often secured over your home.
National Debtline
Free confidential independent service 0808 808 4000
Business Debtline
Provides a free telephone debt counselling service for self-employed and small businesses 0800 197 6026
Consumer Credit Counselling Service
Offers advice to people in debt 0800 138 1111
Citizens Advice
Free independent and confidential advice from more than 700 locations in the UK 0207 833 2181
