Debt & Arrears

Take steps to deal with debt:

• Do not put it off - Deal with it now.
• Prioritise your debts.
• Always let those you owe money to, know that you are experiencing problems.
• Get professional advice as soon as you realise you have problems.
• Get advice from the Citizens Advice Bureau, National Debtline or Consumer Credit Counselling Service. They can give you free debt counselling and they can see if you are entitled to any other benefits.
• Make arrangements that you can afford, be realistic, and stick to them.
• Make sure that you are receiving all the financial support to which you are entitled: Check with the benefits agency, Citizens Advice Bureau, local tax office and check your insurance policies. If you are considering taking a full or part-time job, check how this will affect any benefits you are entitled to.
• Carefully consider your circumstances before agreeing to consolidate your debts. You need to be sure that you can afford the monthly payments. Use a budget plan to help you determine what you can realistically afford. If you are borrowing to consolidate your existing debts, you may be asked to provide security-usually your home-and whilst reducing your outgoings in this way may appear attractive, this may not be the best option. You need to be sure that you fully understand the implications and are confident that you can meet the repayments, both in the short and long term. Failing to meet the repayments may cause you to lose your home.

Prioritise your debts

When money becomes tight, it pays to look at your priorities. Everyone will be asking for their money, but the most important things to pay for first are your home and essential services. YOUR HOME IS YOUR FIRST PRIORITY.

Non-priority debts can be reduced by spreading them over longer terms or deferring payment. A debt counsellor will be able to help you do this.

It is best to talk early

This will help to prevent debts from building up. It is all too easy to bury your head in the sand but the problem won't go away unless you face it & deal with it.  

If you are having problems paying your rent speak to your landlord now. Similarly, if you are in arrears with your mortgage talk to your lender as soon as possible. Discuss a way of paying off your arrears by instalments, so that you can keep a roof over your head.