Managing debt

You may feel like you are struggling to pay your debt and it can often be tough to face up to the reality of your financial situation.

Initially you need to sit down and go through your statements and finances and work out exactly what you owe, who you owe money to and what your living expenses are.

This will give you the information you need to put together a budget. You will then need to prioritise your debts and pay the most important ones off first.

You can find more information about prioritising debt here >>

Speak to your creditors as soon as possible

You need to speak to the people you owe money to as soon as you start having problems, this can be for your rent, mortgage, utility bills or loans. Keep a record of all the telephone conversations you have and the emails/letters you send/receive.

Most creditors will be reasonable if you explain your situation to them. So get in touch with them as soon as you start experiencing difficulties to see how you can work together to improve your situation.

There is a lot of free and confidential advice available and you don't need to pay a debt management company to sort it out for you.

Where to get free advice

There are various organisations who can offer you free debt advice, help you prioritise your debts and help you negotiate with your creditors.

Many also offer free debt management plans - they will help you work out what you can afford to pay and come to an agreement with some of your creditors about how much you can pay each month.

You can find a list of free debt advice organisations here >>