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The first rule in dealing with debt has got to be don't bury your head in the sand your problems won't go away on there own and are very likely to get out of control if you don't deal with them.
Set a budget, if possible on a computer spreadsheet so you can update it on a regular basis, list all your incomings and all your outgoings - be honest with yourself!!! (I can help with this, pm me if you're unsure how to do it)
Prioritise your debts, the most important things are rent/mortgage, and secured loans and any debts to government agencies (income tax, VAT if you're self emplyed or run a business). Budget for living expenses food, power, heating etc.
If the balance of your incomings now exceeds your weekly/monthly debts, take action as soon as possible. Most creditors will accept lower payments but will not be tolerant of repeated missed payments or no contact from the debtor. Citizens Advice or voluntary organisations such as CCCS will help you with this. Do not enter any agreement with a company who will charge to sort out your debt, you do not need to pay for this service.
Once you have set your budget and made your payments arrangements, stick to it, be strong, cut up your credit cards (keep one for an emergency fund but don't carry it round with you), pay cash for goods, that way you cannot overspend.
Check your loans and credit cards, if you are paying PPI, check if you can get it cheaper elsewhere and make sure you can claim on it, if you can't, it has been mis sold, look into claiming back your payments.
Check your bank, loans and credit cards for penalty charges, claim them back, use the charges refund to reduce balances of outstanding debts.
If possible transfer outstanding balances to lower rates, try for 0% balance transfers, try to pay above the minimum payment each month.
Make sure you close all paid up accounts otherwise they remain active on your credit record and it lenders will see it as credit available to you.
Once YOU have taken control of your finances again, you will find life much easier to deal with, and there is help and support available, on this site and through organisations like Citizens Advice.
Set a budget, if possible on a computer spreadsheet so you can update it on a regular basis, list all your incomings and all your outgoings - be honest with yourself!!! (I can help with this, pm me if you're unsure how to do it)
Prioritise your debts, the most important things are rent/mortgage, and secured loans and any debts to government agencies (income tax, VAT if you're self emplyed or run a business). Budget for living expenses food, power, heating etc.
If the balance of your incomings now exceeds your weekly/monthly debts, take action as soon as possible. Most creditors will accept lower payments but will not be tolerant of repeated missed payments or no contact from the debtor. Citizens Advice or voluntary organisations such as CCCS will help you with this. Do not enter any agreement with a company who will charge to sort out your debt, you do not need to pay for this service.
Once you have set your budget and made your payments arrangements, stick to it, be strong, cut up your credit cards (keep one for an emergency fund but don't carry it round with you), pay cash for goods, that way you cannot overspend.
Check your loans and credit cards, if you are paying PPI, check if you can get it cheaper elsewhere and make sure you can claim on it, if you can't, it has been mis sold, look into claiming back your payments.
Check your bank, loans and credit cards for penalty charges, claim them back, use the charges refund to reduce balances of outstanding debts.
If possible transfer outstanding balances to lower rates, try for 0% balance transfers, try to pay above the minimum payment each month.
Make sure you close all paid up accounts otherwise they remain active on your credit record and it lenders will see it as credit available to you.
Once YOU have taken control of your finances again, you will find life much easier to deal with, and there is help and support available, on this site and through organisations like Citizens Advice.
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