If you would like to talk to us in person about getting yourself out of debt please call us on 0800 804 7447.
You can also fill in our enquiry form and we'll get back to you.
Or read on.......
The key to sorting out your borrowing problems is a straight forward three-step approach:
- Work out the scale of the problem;
- Draw up your budget; and
- Don't bury your head in the sand - seek the right help where you need it.
Work out the scale of the problem
In order to work out the scale of the problem, make a list of all your borrowing - don't forget to include unpaid bills, loans from family and friends and money owed on credit cards, store cards and catalogues.
Prioritise your debts
It is important to put your debts in order of priority putting the most important ones to sort out first.
The list below gives you an idea of what might be the most important debts to pay but it maybe that it's not appropriate for you. Also this is not a complete list and further advice should be sought.
In most cases creditors will agree to a monthly repayment to their arrears before they take any action, so it is important to deal with these debts as quickly as possible.
- Mortgage (and other loans secured against your home) or rent
- Council tax
- Gas and electricity
- Tax or VAT arrears
- Business debts
- Hire purchase
- Magistrates' Court fines
- TV license
- Maintenance to support a former partner or children
- Loans from family and friends
- Social Fund Loans, benefit overpayments
- Unlicensed lenders
- Store cards, credit cards and personal loans
Ignoring any of these debts can have serious consequences and you might feel you need help to make the right decision for you - give us a call if you need our help by ringing 0800 8047447
Looking forward/Seeking the right help
If you are having ongoing problems in meeting your monthly bills you may want to look at some of the options we've set out below (not in order of preference)
- If you own your home, you could consider re-mortgaging your property with an alternate mortgage company. It maybe the new mortgage company can offer you a lower rate of interest and therefore reduce your monthly mortgage payment due.
- Restructure your unsecured loans, with one consolidation loan at lower rates, to bring together all your unsecured borrowing.
- If your debts / income /assets do not indicate that a re-mortgage or fresh unsecured consolidation loan would suit, then an IVA ("Individual Voluntary Arrangement") or Bankruptcy may be an answer.
It sounds very simple, but there are two main ways to help yourself.
The Citizens Advice Bureau provides a number of self help guidance articles and fact sheets - http://www.adviceguide.org.uk
Making the most of your money
Whatever your situation, it makes sense to do what you can to make the most of your money. For example:
- always shop around to see if you can save money on your bills and other purchases
- see if you can reduce your spending
- you may be entitled to more benefits than you are currently claiming
If you've had problems with debt but you're now getting yourself sorted out, you might think about trying to repair your credit history.
Even if you're coping with your borrowing at the moment and you're not planning to take out any new loans, it's a good idea to review your current borrowing from time to time.
If you want to look more generally at your finances, see the FSA's Financial Healthcheck.
Need more help? Call us on 0800 804 7447 or fill in our enquiry form and we'll get back to you.
Bulman House . Regent Centre .
Gosforth . Newcastle upon
Tyne . NE3 3LS
Tel 0191 285 0321
Fax 0191 284 9117
10 Manchester Street .
Morpeth . Northumberland .
Tel 01670 513106
Fax 01670 504064
Medway House . Fudan Way .
Teesdale Park . Stockton on Tees . TS17 6EN
Tel 01642 676888
Fax 01642 605866
DX Stockton on Tees 10 723019