Debt Management
You can solve your financial debt problems by contacting the people you
owe money to or the many organisations willing to help you - so get advice
now.
Here are some tips from OFT that should help you get started:
- don't panic or ignore the problem: unopened bills won't go away
- you can't ignore your debts. Better to pay a small amount than nothing
at all - those you owe money to may be prepared to accept low repayments
- if struggling with store or credit cards stop using them
- work out a realistic budget that covers all your income and spending.
Check whether there are any benefits or tax credits you are entitled to
that you are not getting
- decide which debts take priority - like mortgage or rent - and which
cost you most through penalties or higher interest rates
- only agree to pay off debts at a rate that you can keep up - don't
offer more than you can afford
- contact those who you owe money to as soon as possible. Let them know
that you are having problems. Many companies will be helpful if you talk
to them
- if organisations won't accept your repayment offers, seek advice
- if you get a threatening letter get advice from your local Citizens
Advice Bureau or trading standards service
- if a debt collector calls at your home you don't have to let them in.
If you want time to get advice arrange a later appointment. If a debt
collector or lender harasses you contact your local Citizens Advice Bureau
or trading standards service
- check if a loan will be secured on your home. If it is and you do not
keep up repayments you could lose your home. If you do not understand
the terms of a loan get advice
- if you're thinking of taking out a new loan to pay off debts make
sure you find out the total cost of the loan, not just the monthly repayments
- think very carefully before borrowing more to pay off your debts. Get
impartial advice and don't rush into signing anything you don't understand
- if you are thinking of using a fee-charging debt management company,
then make sure you understand exactly what you are signing up to - check
what fees you will be paying to a debt management company and how long
it will take you to pay off your debts
- keep copies of all letters you send and get about your debts.
Medic8® Guides
Health centres
|