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Problems

Debt

It is very easy and very common for anyone to get into debt. If you do have financial problems don't just ignore it and hope it will go away - it won't. The worst thing you can do is to ignore letters asking for money as sooner or later you will be sent letters threatening you with legal action and this will only cause you more pressure and distress.

You must get financial advice as soon as possible. Citizens Advice Bureau will help with financial matters and will often write letters on your behalf to companies asking for money. The National Debtline produces an excellent free booklet which gives advice on all kinds of debt including mortgage and rent arrears and what to do if you are threatened with repossession.

It is essential to pay priority debts first - gas, electric, water, mortgage, rent etc. These must come before paying off credit cards or personal loans (except loans secured on property).

The booklet from the National Debtline informs you of your rights. Most credit card/loan companies etc. assume you don't know your rights and they demand money and make threats in many cases which they have no right to do. The booklet explains how to work out your money going out and money coming in - see what is left over, advises you how to work out what is left to give to people you owe money to once you have taken out your priority debts. Don't offer to pay more than you can afford to pay. Keep copies of any letters you send to anyone you owe money to. If you cannot make the full minimum payment offer to pay something even if it is only a token payment.

Look at ways you may be able to cut down on your spending. Charity shops are now very fashionable places to get your clothes and other items so don't discount them. Have a think about if there are any ways you can make extra money e.g. you may have a lot of stuff in your house you don't want or use so maybe think about having a boot sale, if you are talented and artistic and creative - what about selling your items at craft fares, charity fun days etc.

Try not to let financial difficulties come between you and your partner if you are in a relationship, try not to talk about money problems constantly - set aside a certain time each week to talk about money problems and then let it go. Try and work out what to do together - it is no good blaming each other - focus on the solution to the problem.

Get advice and don't ignore the problem - sort things out as soon as you can.

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Some agencies who provide information and advice

  • National Debtline: 0808 808 4000, www.nationaldebtline.co.uk - National telephone helpline for people with debt problems in England, Scotland and Wales. Expert advice and send callers in debt a self help information pack free of charge

  • Citizen Advice Bureau: Have bureaux across England, Wales and N. Ireland, www.citizensadvice.org.uk - For nearest CAB and www.adviceguide.org.uk for CAB information online

  • Institute of Credit Management: 01780 722900, email info@icm.org.uk, www.icm.org.uk - Advice and guidance on all aspects of credit management

  • Bankruptcy Association: 01524 782713, www.theba.org.uk - Helpline and other support for people in, or facing bankruptcy. Helpline for members £15 per year. Online information

  • Business Debtline: 0800 1976 026, www.bdl.org.uk - Telephone advice and legal advice for self employed people and small businesses. Produce self help material. Casework for clients living in the Birmingham City Council area

  • Consumer Credit Counselling Service: 0800 138 1111, www.cccs.co.uk - Helpline and counselling for people with debt problems. Provide debt management plans which include debt repayment schedules and advice on all aspects of money management

  • Credit Action: www.creditaction.com - Helpline for people having problems with money or debt. Run teaching seminars on debt and produce publications

  • Debt Advice Foundation: 0800 043 40 50 www.debtadvicefoundation.org Free impartial advice on issues relating to debt. Website includes budget planner, debt analyser, benefit entitlement checker, money management guide, student debt guide, and education section aimed at developing children’s understanding of key financial principles and equip them with the tools they need to responsibly interact with the world of finance as they enter adulthood.

  • Direct Debt Line: 01323 635999, www.directdebtline.com - Telephone advice for the general public on money and debt

  • TaxAid: 0845 120 3779, www.taxaid.org.uk - Telephone advice and information for people needing tax advice who cannot afford to pay an accountant. Also face to face advice service in London

  • The Insolvency Service CentralEnquiry Line:
    Insolvency enquiries: 0845 602 9848
    Redundancy enquiries: 0845 145 0004,
    www.insolvency.gov.uk - Helpline providing initial information regarding insolvency legislation, e.g. bankruptcy, liquidation

Useful websites

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