Help With My Debt

Help With My Debt

Have your debts become unmanageable? Maybe now is the time to do something about it. If so, there is help out there! 

How Much Debt Do You Owe?

As a first step, it is always a good idea to gather information about your debt. To begin with, calculate how much in total you owe and how many people you owe money to. Include both companies and individuals you may have a debt with. 

You should include Unsecured Debts:

  • Money you have borrowed from friends and family
  • Rent arrears
  • Credit Card debt
  • Council Tax Arrears
  • Energy or Water Bill debt
  • Personal Loans

You should also include Secured Debts:

  • Car Finance
  • Mortgage Debts
  • Secured Loans

This is also a good time to consider, which debts you are behind on, whether you are being chased etc.

Which Debts Should You Deal With First?

Once you have listed your debts, you will need to divide your debts into Priority Debts and Non-Priority Debts. Priority debts are those that can have severe consequences should you fall behind.

Priority Debts include:

  • Rent Arrears
  • Mortgage Arrears
  • Council Tax
  • Utility Bills
  • Phone or Internet Bills
  • TV Licence
  • Court Fines
  • Income Tax, National Insurance or VAT Debt
  • Child Maintenance

Make A Plan To Pay Off Your Debt

When making a plan to pay off your debts, you should calculate what, if anything, you can afford to pay.

Create a monthly budget that subtracts all of your outgoings from your income. What is left is your disposable income, or your free money.

If you want to increase how much you are paying towards your debt then this is the money to use.

You may find at this stage, some money you feel is being wasted; a direct debit for something you no longer need, or you may be surprised with how much you are spending on things that can be cut down, like takeaways for example.

If, when you budget, you find that you have no disposable income at all, then you should contact your creditors (the people you owe money to) and speak to them about your options. For some of the lower priority debts, you may be able to reduce the amount you pay.

If you are struggling significantly and you feel there are no other options, then perhaps a formal debt solution could be the answer.

Which Debt Solutions Are Out There For You?

If you are finding that your debt is spiraling out of control, then maybe a debt solution could be the answer. 

If you live in England, Wales or Northern Ireland, then the following could be an option for you:

If you live in Scotland then your options are: