So you’ve got yourself into debt, what can you do?
First of all you need to face up to the facts. Work out what your income is and what your outgoings are. Make a list of any outstanding bills and debts.
Prepare a budget to cover the reality of your situation. Sort out your priorities. Focus on what must be paid now, or what is costing you most in interest payments. Try to identify those things that can be paid later.>
Try and keep in touch with your creditors, and see whether you can re-negotiate lower repayments and let them know of any change in your circumstances. Most utility companies or local councils will negotiate ways of repaying outstanding debts. If you have anything on rental that you can do without, like extra TV channels, dishes etc. Consider changing your mobile to “pay as you go” or even managing without it if you can.
Don’t panic. Make sure you seek out free Advice from the Citizens Advice Bureau or Consumer Credit Counselling Service.
You could use the plan below to work out your income and outgoings and prepare a budget that you can stick to.
Do you know all the help that you might be eligible for. If you are on a low income there may be some benefits that you can claim for. Why not check these out. Make sure that you have all the help you can get.
Tip by Liz Percival