Dealing with Debt Problems
Dealing with debt problems can be stressful and cause uncertainty. The potential implications, both for the present and the future, are huge. For those in debt and finding it hard to cope, the problem needs to be dealt with as soon as possible or the situation will become more stressful.
Action to deal with debt
Sorting out your debts is the first step - working out who you owe money to and how much. The priority debts are not always the ones with the largest outstanding balance. You should divide your debt into priority debts and non-priority debts. Debts should be prioritised depending on the seriousness of what happens if no repayments are made. By working out a personal budget, you can identify which debts you can afford and those you cannot.
Communicating with creditors
Talking with your creditors is essential. Paying off debts with a repayment plan will satisfy many lenders of your good intentions regarding your debt, providing you can keep to it. This is why a budget is so essential. If you agree a repayment plan on the phone with your lender, you should confirm in writing.
Seeking help and advice about debt
There are a variety of advice agencies and charities who will be able to help you deal with debt. These include Citizens Advice Bureau, National Debtlines, CCCS and many others. Please see our debt advice page for more information.