I’ve built up a bit of debt and I am panicking. Even though I cut back, Christmas was expensive, my spending has gone up and what I have coming in just doesn’t stretch as far as it used to. What can I do?
First of all it’s important to know you’re not alone in finding things difficult, and crucially there is support available.
The first step is to collect all the information you have about your debts, this might include contracts, bills and statements.
Next, make a list of your debts and write down the details of each. This could include who you owe the money to (this person or company is your ‘creditor’); when you first missed a payment; and how much you now owe. You’ll also need to make a note of your account or reference number and what steps the creditor has taken to get the money back, eg. sending you letters.
It might feel overwhelming when you see all of your debts written down – but try not to worry, the important thing is that you are sorting them out.
If you are behind on household bills, prioritise paying your rent or mortgage, plus energy bills and Council Tax first. Not paying these bills has the most serious consequences. You should speak to the person or company you owe money to, to see if there are any manageable steps you can take to start reducing your debt.
Once you’ve got these debts under control, you should look at any other debts like credit card or store card debts, payday loans or missed Buy Now Pay Later payments.
While you are looking at money going out, do remember to consider money that could be coming in. It’s always worth checking if there are any benefits that you are entitled to, including support with your energy and living costs. There’s a benefits calculator, advice on how to reduce living costs and information on other ways to increase your income, plus further advice on dealing with debts, on the Citizens Advice website – www.citizensadvice.org.uk
There is also emergency support that you may be able to access, such as a food bank or fuel vouchers. You could also contact your local council to see if they can offer support.
We know that times are incredibly tough but please remember, you don’t have to face this alone. If you cannot access the website or need further help you can contact Citizens Advice Stroud and Cotswold Districts on 0808 800 0510 or 0808 800 0511 Monday to Thursday, or Email us using the form on our website (www.citizensadvice-stroudandcotswold.org.uk).
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