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Seven steps to control your debt
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If you’re struggling to keep up with your debt payments, don’t just ignore the problem. There is action you can take in even the most extreme cases.
Step 5: Get debt help
Borrowers with debt concerns should tackle the problem head on. If you feel your debts are out of control don’t bury your head in the sand. Seek help from a free, independent advice charity: National Debtline (tel. 0808 808 4000), the Consumer Credit Counselling Service (tel. 0800 138 1111) or visit your local Citizens Advice Bureau.
Step 6: Prioritise debts
It's important to understand that the creditors who shout the loudest and put the most pressure on you to pay may not be your biggest priority. For example, it's much more important to pay the rent, the mortgage, gas and electricity bills than credit and store cards.
dealing with debt
Step 7: Negotiate with creditors
Once you know your budget and you have prioritised your debts you can approach your creditors with a realistic repayment plan which gives each creditor a relative proportion of your monthly disposable income, after you have covered your basic necessities. Most creditors will accept even token payments, provided you are prepared to pay something each month.
This sort of informal repayment plan is usually better than an individual voluntary arrangement (IVA) for most people in debt because it's flexible. If your income falls or rises for any reason you can renegotiate your monthly payments. This is not possible with an IVA.
