Debt Help

3 easy steps to deal with your debts

3 easy steps to deal with your debts

When an unforseen change happens in our life like becoming ill, losing your job etc money worries can very soon add to the problem.

As this ‘money worry’ can create stress and probelms we have listed below our 3 step guide to help you deal with your debts.

Step One – Making a Budget

If you are in genuine financial difficulty it is essential that you sort it out as soon as possible. Both you and your creditors will want to do this quickly. The first step is to work out exactly how much you spend each month on your basic living costs. Essential Expenses we call them. At this stage do not includ any of your debts, just the essentials like mortgage or rent, power and heat, food, these kind of things.

It will also help to cancel any of your non-essential expenses. Things like club memberships etc. This will ensure that you have more money left to pay off your debts sooner. It may be a good idea now to look at the many online price comparison sites and check that you are paying the best price for your essentials. Every pound you save can be put towards clearing your debts quicker.

Also make a note of all the income you receive now. Include any benefits too.

Step Two – Adding up your debts

You now need to make a list of all of your debts, including any credit cards, store cards, personal loans and bank overdrafts. Include the names of the lending company for each debt and how much you pay them each month. Where possible also include an up to date figure on how is outstanding to pay.

With all this information you will quickly see the size of your particular problem. Make a 2 colum list. Put your total incomes in the left side and the total Essential Expenses plus the Total Monthly Debts on the right side. Now you will see how much you have left each month to pay towards your debts.

For example: Income £1,000  Essential Outgoings: £910  Debt Payments £310.

Clearly you will only have a maximum of £90 to offer to your creditors. You can approach them individually and try and negotiate but I reccomend using a Debt Management Company to do this for you.

Step Three – Setting up a repayment plan

As everyone’s circumstances will be different a Debt Management Company will create a bespoke plan (DMP) just for you. Using the figures you give them as in step one and two they will calculate exactlt how much money you have left each month to put towards your debts and liaise with your creditors to establish a fair plan of payments. They will hopefully get the interest charges FROZEN and thus enable you to make real payment off the debt balances.

It can often work out that you end up paying back MORE capital each month under a DMP than you were when paying the usual monthly payments with interest included.

Obviously there are implications to these type of arrangements. Your credit file will be updated to show that you are in an ‘arrangement’ but frankly it would have been showing missed payments etc anyway. You have nothing to fear from a DMP.

You may have insurance that covers your card payments etc, the Debt Management Company will ask you about these and take account of any that can help your situation.

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Citizens Advive

Citizens Advive (yes we know we spelt it wrong)

Citizens Advice Bureau:

Citizens Advive Bureau

• For Wales call 0844 477 2020
• For England call 08444 111 444 or check your local bureau’s contact details via the search box below

Calls to our national phone service (0844 numbers) will be charged at five pence per minute from a landline and may cost considerably more from mobile and other phones

The Citizens Advive helps people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers.

National Association of Citizens Advive Bureau members give free advice on all subjects.

Click here to get advice on several social issues.

Citizens Advice Debt Advice

Citizens Advice Debt Advice

Citizens Advice Bureau:

Citizens Advice Debt Advice

If you’re in debt, you need to take action quickly to stop the situation getting any worse. The sooner the better.

To start dealing with your debt problems you can look at the CAB page on how to sort out your debts. This will help you work out how much money you owe and whether you’ve got any urgent debts. Then you’ll need to look at the section on Budgeting to see if you’ve got enough money to pay off your debts.

The Help With Debts information is available when you click here. It will open in a new window.

The Citizens Advice Basildon helps people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers.

National Association of Citizens Advice Bureau members give free advice on all subjects.

Click here to get advice on several social issues.

Citizens Advice NI

Citizens Advice NI

Citizens Advice Bureau:

Northern Ireland Citizens Advice Bureau

Citizens Advice NI is the largest advice charity in Northern Ireland, working against poverty and meeting the information and advice needs of some 92,000 people per year and dealing with over 320,000 issues across a wide range of  advice categories.

Advice is available to all communities from 31 main offices across Northern Ireland and from over 100 other outlets.

They also represent the public at some 1800 social security appeal tribunals a year.

For a map and contact details of your nearest Citizens Advice NI office click here and a new window will open.

Citizens Advice Carlisle

Citizens Advice Carlisle

Citizens Advice Bureau:

Carlisle Citizens Advice Bureau

5-6 Old Post Office Court
CARLISLE
Cumbria
CA3 8LE

The Citizens Advice Carlisle helps people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers.

National Association of Citizens Advice Bureau members give free advice on all subjects.

Click here to get advice on several social issues.

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Citizens Advice Milton Keynes

Citizens Advice Milton Keynes

Citizens Advice Bureau:

Milton Keynes Citizens Advice Bureau

Acorn House
361 Midsummer Boulevard
MILTON KEYNES
Buckinghamshire
MK9 3HP

The Citizens Advice Milton Keynes helps people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers.

National Association of Citizens Advice Bureau members give free advice on all subjects.

Click here to get advice on several social issues.

Incoming search terms:

• citizens advice milton keynes

Citizens Advice Basildon

Citizens Advice Basildon

Citizens Advice Bureau:

Basildon Citizens Advice Bureau

The Basildon Centre

St Martins Square

BASILDON

Essex

SS14 1DL

T:  08701264042

T: 0870126042

Click for Map

The Citizens Advice Basildon helps people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers.

National Association of Citizens Advice Bureau members give free advice on all subjects.

Click here to get advice on several social issues.

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Getting out of debt

Getting out of debt

Help solve your debt problems by using these 5 Tips

Want to solve debt problems that have been crippling you? Are you usually late paying your credit card bills each month? Need help getting out of debt?

• What’s the size of your pile of bills?
• Is it getting higher and higher with notices of default from nasty creditors?
• Do you worry about losing your home because you can’t pay off your credit card debt?

When you’re drowning in debt it’s not something which can be dealt with lightly. Anyone who has ever been in this situation knows how worrying, degrading, frustrating and completely humiliating it can make you feel.

Something you need to know is that there are things you can do to resolve debt problems and make your financial situation better if you take the following steps.

Learn to Budget

The moment you find yourself in a pinch and falling behind lay out a budget right away. What’s your income? Does it cover your current costs? Make a list of all your expenses at the moment. Eliminate the ones that are not vital. Only keep the ones that you need the more unnecessary expenses you can eliminate the faster your recovery will be. Do you need the super cable TV plan with all the channels or the latest cell phone with all the bells and whistles. You’ll be surprised how much costs you can trim when you lay out a plan and look at reductions.  Eating at home more often can save you a bundle and may help you eat more nutritiously to boot.  Just make sure your budget covers all your necessities like food, clothing, basic utilities and health care.  Eliminate or reduce all the rest.

Talk to your Creditors

Most people deal with creditors by just avoiding them. This is not the way to solve credit problems. This action just delays the inevitable problems down the road. It will lead to much bigger problems in the future. If you fall behind in making payments the best way to deal with it is to let your creditors know and give them the reasons you aren’t able pay and see if they can provide a revised payment arrangement.

It’s quite important to notify your creditors you are still willing to pay your debt. When you face your creditors this assures them and will keep them from passing your debt off to a collection agency.

Dealing with Debt Collectors

Debt collectors will try to get the best deal for ‘their’ client but remember they can’t legally do  anything which isn’t fair when attempting to collect money from you. You have many rights under the law and it may hel to become familiar with your rights and protections under the law.  It will guide you in how to best deal with debt collectors it also gives you a feeling or Empowerment knowing what your rights are.

Credit Counseling

Consider a good credit counseling organisation. There are many institutions and groups which provide credit counseling for anyone facing financial difficulties. They can offer advice and help you come up with a plan for payment arrangements. You can then submit this plan to your creditors. The support and understanding they can provide can also give you a boost to take the actions you need.

Debt Management Plans

If you prefer you can use the services of a professional Debt Management company. They will do everything for you including creating a repayment plan, arrange to collect these from you and distribute the money to your creditors. They will usually arrange for the interest to be frozen while on the DMP too. You will very often find you are repaying your debt faster this way. If you want to know more about a DMP contact us on the form above.

Bankruptcy

Bankruptcy, the “The Final Solution”. Just saying or thinking about this one can bring a shiver down most people’s spines. This should be a last resort to remedying your financial problems. It is the legal method of resolving debt issues with your creditors. However, you want to keep in mind that when you become a bankrupt it will stay on your credit report for many years. You may find it difficult to receive any additional credit for years to come. You most definitely will pay much higher interest rates for any credit you do receive. It can make it difficult to buy a house or even get a job. In fact depending upon your profession it may cause you to lose your job.

In Summary

Be proactive in your approach to solve debt problems and follow a plan of action like those listed above. You will help you situation faster and you’ll be surprised how much better it can make you feel by taking action. One thing is for sure, if you do nothing it will NOT go away!

Getting out of debt is possible so don’t worry yourself sick. Just follow the advice on these pages and it will all get resolved.

Debt Advice Line

Debt Advice Line

Debt Advice Line

National Debt Line

National Debt Line

National Debt Line