Advice on Debt Management

Where do you stand?
Establish your income and expenditure flow each month - however painful it is to sit down and work this through you have to face up to the realities. You must list everything so (for example) expenditure covers not just mortgage (or rent) payments, all regular bills (electricity, water etc.) but must include food, clothes, cigarettes, petrol etc. Now deduct your average monthly expenditure from your regular monthly income figure and arrive at a figure either showing money to spare or indeed money short each month.

If you have money left over each month but establish that it ends up going on non essentials such as parties, music etc. then cut these out and start repaying some debts (don’t delay and make things worse) - list all the people you owe money to and work out a sensible repayment plan based on your monthly surplus.

If you really are scrimping and still left short every month do you have the option of taking on extra work such as a part time job? Now may be the time to knuckle down and pay off the debts before it’s too late. (If this isn’t an option and your debts are substantial look to the options following regarding consolidation or advice)

Get the debt order right
Getting into debt can really mean getting into not just a financial but mental slump. So don’t get into a bunker mentality and stop paying debts or simply pay those debts from companies that ask loudest - work out a plan that will help you. Do not hesitate to get help to complete this essential task if needed - see our advice page. Whatever you do it is essential to...

Keep in contact
It’s easy simply to stop responding to demands for payments whether by phone or post - but it is very important that you keep in regular touch however stressed you get. Divide your list of creditors between those who have been demanding late payments and those who you know you cannot afford to settle and thus will soon become an issue.

Get in touch with all of these lenders / creditors and explain that you are unable to meet your commitments. Discuss options such as reduced payments, payment breaks, interest waivers etc. But make sure that you only agree to something you know you can commit to - and that won’t prejudice other debts you have. If needs be send copies of your income and expenditure commitments to them to prove your circumstances, or perhaps your predicament is due to illness or injury? Either way get it in writing and keep a copy and proof of sending - by making this effort it will prove your willingness to deal with the issue especially if it ends up in court.

Save Money Now!
The Credit Helpline helps families by exploring potential ways to reduce their monthly payments, reduce interest payments and consolidate debt - to potentially reduce monthly outgoings and improve their lifestyle. Click here to see by how much you could potentially reduce your monthly payments by.

Consolidation
Take a look at your debts - are you paying exorbitant rates of interest and late payment penalties? Now may be the time to look at consolidating all of these debts under one loan with one monthly payment. It may not be the most practical solution or simple to effect - talk to the experts at the credithelpline on 08704 28 28 29* to find out what options you have - alternatley try out our calculator to estimate potential consolidation savings >>>

Debt transfers
Take a look at your credit card and overdraft debts - you may be paying excessive interest payments so either look to consolidate (see above) or to transfer these debts to a more competitive credit card company. There are now literally hundreds of card companies making a variety of offers; look at our advice (on credit cards >>>) and make doubly sure that if you do transfer there are no hidden catches such as an introudctory offer that seems great to start with but ends after a short period with uncompetitive charges.

Look to get help
Don’t be too afraid or too proud - there are many organisations out there that offer free and impartial advice - see our list >>>

If things have got really serious
If you have received a summons then don’t ignore it - get advice urgently from an organisation that can help such as the Citizens Advice Bureau. Contact details >>>

Do not avoid the problem

If you are in financial difficulties don't leave it too late; do so and you could loose your home (if you have a mortgage).

Advice on six simple steps to assess where you stand and the best ways to overcome and deal with debt issues.

Helping you with:
CCJ's
Poor credit history
Loan repayment problems
Low credit score
Adverse credit advice
interest payments
Debt consolidation

HELP & ADVICE

Do not avoid the problem If you are in financial difficulties don't leave it too late; do so and you could loose your home (if you have a mortgage).

Advice on six simple steps to assess where you stand and the best ways to overcome and deal with debt issues.

Helping you with: CCJ's Poor credit history Loan repayment problems Low credit score Adverse credit advice interest payments Debt consolidation

HELP & ADVICE

Do not avoid the problem

If you are in financial difficulties don't leave it too late; do so and you could loose your home (if you have a mortgage).

Helping you with:
CCJ's
Poor credit history
Loan repayment problems
Low credit score
Adverse credit advice
interest payments
Debt consolidation