First steps

If you are worried about how much money you owe the main thing to do is to acknowledge it as early as possible (sticking your head in the sand doesn’t work with debts!). Contact the companies that you owe and as many people as possible to advise you. It is probably better to contact agencies in the charitable and voluntary sector rather than debt management companies who usually are commercial and often advertise as free advice. They do however take a percentage of the money from the debt management plan that they offer you.

If you use catalogues or companies that offer credit either as money, vouchers or goods, please check exactly how much you will pay in total for each item. These credit agreements and pay by slot or weekly payments often total up to two or three times the cost of the goods. Often people who are struggling financially feel that they have no other option. However, there may be a Credit Union in your area or a money advice centre that can suggest other options.

Once you have faced up to your debt, spoken to people who can advise you and then made arrangements with the people you owe, you will be able to relax a bit, sleep better and focus on the future. Don’t beat yourself up about being in debt, it happens to lots of people at some point in their lives, if you are sorting it out you are doing well, you are managing. Good Luck.

Contact your local Citizens' Advice Bureau or Debt Advice Agency

or call  National Debtline on 0808 808 4000

            Consumer Credit Counselling Service on 0800 138 1111

            Credit Action on 0800 591084

See Debt Links to find your local CAB and more organisations that can help you.

For information on debt, bankruptcy, credit and more look at www.thesite.org.uk/homelawandmoney