Want to find out how to manage your debt? There are several ways you can tackle your money worries. We’ve listed them below and a few considerations you should think about before opting for a more formal debt solution.
The Importance of Priority Debts
The first thing we will always establish before discussing your debt, is whether you are up to date with priority bills.
The following bills are ‘Priority’.
The types of debt which, if unpaid, can have more serious consequences are:
- Mortgage, rent or loans secured on your property
- Council tax
- Utilities such as gas and electric
- Magistrates court fines
- Maintenance payable to an ex-partner or child
- Income tax or VAT arrears
- TV licence
If you fail to make these payments, they can result in further action being taken such as:
- Eviction from and/or repossession of your home
- The loss of essential services i.e. your gas or electricity supply could be cut off
- Bailiff Action
- Money is taken directly from your wages or benefits
Look at Your Budget
Are you able to decrease your outgoings and increase your income to deal with your debts? It’s worth looking into the options that are not formal first. You may be able to cut back on unnecessary spending with the help of budgeting and increase your hours at work with overtime, or even a second job.
Set Up a Payment Arrangement Directly
You can contact your creditors yourself to discuss a small payment arrangement if you cannot keep up with your previously agreed payment.
Look Into a Consolidation Loan
A debt consolidation loan can be a viable option for people who want to streamline their finances if they can keep up with payments. There are pros and cons to getting a debt consolidation loan and it’s worth getting debt advice first to see if it’s a suitable option for you. The aim of a debt consolidation loan is to make the payments more manageable by only having one monthly payment, instead of keeping track of multiple payments.
Get Debt Advice
You can get debt advice your way. Our online debt advice tool allows you to input information regarding your current debts, income, expenditures, marital status, and renting situation, amongst other details, to gauge your current circumstances. It removes the need to speak with an advisor, so you can get your recommendation instantly on screen. You can also get your advice anytime, it’s available day and night.
If you prefer to speak directly with someone over the phone, you can call us or book an appointment at a time that suits you. You can also email us directly with some information regarding your debts, for example, how much you owe and who to, and we can get back to you to discuss your options. You can also chat with one of our advisors on WhatsApp. If you don’t have access to a private and secure email account, it’s a good option. This line is in place to make contacting us a bit easier if you don’t want to use any of the other options.