Dealing with a debt crisis.   Don't...

If you are in a crisis over debt or money problems, you may find the following information helpful. Please contact us for more help.

Don’t panic, and don’t bury your head in the sand.

• Talk to us and your creditors  - don’t just stop payments without explaining why. They can sometimes be more understanding than you’d expect.
  
  
• Avoid borrowing further to try and pay off existing debt – this is likely to lead to more problems in the long run.
• Sit down and work out how much you owe and how much you need to pay your priority debts, like mortgage, rent, gas and electricity bills, council tax. Don’t fall into the trap of paying whoever shouts loudest first.
  
• Make sure you pay the priority debts first every month and then work out how much you need for food, travel to work and other everyday expenses.
• Once you’ve done all of that, you can start to work out what you can afford to pay each month to non-priority creditors like credit cards, store cards etc.
• If what you have left doesn’t cover what your non-priority creditors are asking for each month, speak to them and come to an arrangement about how much you can afford to pay them.
• Only offer to pay off debts at a rate you can keep up – it is easy to be panicked into offering more than you can afford.
• If you need help to do that or they won’t listen, make an appointment to see a money adviser.
• Think twice before paying for debt advice – Citizens Advice is the largest free independent money advice-giving organisation in the country, so we’re used to dealing with creditors on your behalf!
• Use standing orders and direct debits to meet regular outgoings such as rent/mortgage, utility bills, council tax etc.
• If you can pay for goods outright, don’t be persuaded to take out credit unless it really does work out cheaper or better meets your budgeting plans.
• Try to save something every month, especially for planned spending like holidays and Christmas.
• Set up a standing order to a savings account. You will be surprised how quickly you will forget you are saving!