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:

* get free advice

* 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.