Managing Debt

Many people experience money problems at some stage of their lives.  Don't be tempted to ignore the problem and hope it just goes away - it won't!  The sooner you start to take steps to sort things out, the easier it is to remove the pressures of being in debt. 

Here are some warning signs and tips to get things under control.

Watch out for the warning signs

If you constantly have to juggle your money the chances are you may have, or be in danger of having, a problem with your finances. Consider the following warning signs, and if any apply it could indicate that you need to take action.

• Do you pay only the minimum payment on one or more of your credit cards month after month?
• Do you borrow cash from friends and family?
• Do you borrow more to pay off your debts, or take cash from your credit cards to cover monthly payments on other debts?
• Do you pay charges on your current account because of bounced cheques or unpaid bills?
• Do you pay for grocery or utility bills by credit card, but don’t clear the balance each month?
• Have you recently been declined credit?

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How do I start to get things under control?

If you do find yourself in trouble, don’t ignore it. The problem will only get worse if it’s not dealt with quickly.  If it does get to the point where you’re having money problems, you should consider the following to help you get things under control.

• Use our interactive budget calculator to list your monthly income and outgoings. You’ll then be able to see where you are with your money
• If you do find yourself in trouble don’t ignore it, it’ll only get worse
• Look at what non-essential outgoings you could cut back on
• Consider your priority debts first such as council tax, rent, mortgage payments and outstanding fines
• If you do owe money on credit or store cards, you’ll be charged interest if you don’t pay your bill in full. And if you only pay the minimum amount, you’ll be charged much more interest and it’ll take a long time to clear the balance
• If your outgoings exceed or are very close to your income, speak to one of the organisations listed here to get some information on how to approach your lenders to reach a payment arrangement.

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Potential options

The legal options available for you to consider should things become too difficult to sort out on your own depend on where within the UK you live.  For more information click one of the following links:

Options in England, Wales and Northern Ireland

Options in Scotland

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