Most people have some kind of debt, whether it’s a mortgage, bank loan or overdraft.
Top tips for managing debt:
Decide which of your debts are most important. If you’ve got a mortgage, this would be important because not being able to pay it could put your house at risk.
Work out which debt would cost you the most if you could not pay it. Think about the penalties or interest rates you might get charged.
If you are having problems, contact those who you owe money to as soon as possible. Many companies will be helpful if you talk to them.
Don’t ignore your debts. It’s better to pay a small amount than nothing at all.
Think very carefully before borrowing more to pay off your debts. Get impartial advice and don’t rush into signing anything you don’t understand.
For more information or advice, please visit the following websites:
National Debt Line
Consumer Credit Counselling
Money Made Clear (FSA)
Do you have any useful advice or experiences that could help others? Tell the website Editor or talk to other people.
Katie from Lichfield
Katie was worried that she was spending more than she was earning and was starting to accrue credit card debts. She enjoyed socialising with friends, ate out a few nights during the week and would normally have a couple of holidays each year as well as frequent weekends away.
“I was starting to miss my credit card payments and was late paying my rent and council tax. I contacted the National Debt Helpline as I wanted advice on how to stop the situation before it got too bad.
They advised me how to prioritise my debts, how to work out a monthly budget and cut down my spending.
My debts and spending are now under control and I stick to my budget each month”.
Katie's story is for illustrative purposes only. Do you have any useful advice or experiences that you can share with others? Send the editor your advice or experiences