Seven points to help deal with debt - Debt Problems
The number of people seeking expert advice about redundancy and debt has soared as the recession takes its toll on the nation's finances.
Inquiries about redundancy shot up by 179 per cent in the first three months of this year, compared with the same period in 2008. There was also a 21 per cent rise in people wanting help with debt.
People owed on average £17,000, which would take them more than a lifetime to repay at a level they could afford.
There was a 49 per cent jump in inquiries from people struggling with mortgage and loan arrears, and 24 per cent more people asked about bankruptcy.
While it may seem easiest to bury your head in the sand when struggling with debt, there are ways we can help you deal with it. Here are some tips.
1. Make an inventory
Sitting down and taking stock of your debts may seem the least attractive option when you are struggling, but it is vital to know what you are dealing with.
Gather all the paperwork you have from everything you owe and make a note of how much each debt is, how much interest you are paying and whether you are in arrears. It is also sensible to note whether it is a secured debt (which means you could lose your home or car if you don't keep up with payments).
Those who fear they are struggling should do this as early as possible. This will stop things spiralling out of control.
2. Get your priorities right
After making a list, you will be able to work out which debts you should deal with first. Your priority should be to ensure that debts secured against your home or council tax are paid first. After that, look at how much interest you are paying on debts to see which ones you should try and clear first.
3. Talk it through
If you've taken the steps above and feel you need more advice, there are plenty of sources available. However, you will need to make sure you are talking to the right people. This is where we come in, with our sympathetic ear we can help in most cases to put your mind at ease, We talk to people with debt issues all day every day. We understand what its like, and how worrying it can be to take the first step in talking to some one. Have a look at out testimonials page and read about our customers experiences while being a client of FH Debt Solutions.
As a qualified debt counselling company we can provide advice on all debt management, ivas and trust deeds. we offer no obligation advice, we never cold call, and we dont use call centres.
4. Look for a breathing space
If you can't pay your mortgage or other debts, it is definitely worth talking to your lender rather than letting the red bills rack up. If you are on a repayment mortgage, a lender may allow you to switch to an interest-only deal, which will mean lower monthly payments.
They may also allow you to take a payment holiday. Make sure you start repaying your mortgage again when your circumstances change, or you will end up paying more in the long run. This is something we can help with and negotiate with your creditors on your behalf, We can also advise on the best solution with your mortgage.
5. Check your benefits
If you are struggling because you have recently been made unemployed or are on a low wage, you may find that you could get help from the Government. Many pensioners, too, are not aware that they could claim extra money to top up their pensions. One way to check is to use www.entitledto.com , which will give you some idea of whether you are claiming everything you are entitled to.
Pensioners could contact Help the Aged on for further help 0808 800 6565.
6. Make painless savings
If, like many people, you have more time than money, you may be able to drastically reduce outgoings to help with your debts. Consider switching to a better gas or electricity deal, shopping around for cheaper food and drink, changing your insurance provider and switching credit card debt onto a lower rate.
There are many websites to help you.
7. Don't be bullied
If you have missed some mortgage payments, your bank will be on your back to pay back the arrears very quickly. If you do not feel you can do this, don't panic.
You should not be evicted if you can demonstrate you can afford to make monthly repayments plus a small portion of the arrears each month. You could also ask about adding missed payments to the loan, which is known as capitalising your arrears.
If you are at risk of losing your home, the housing and homelessness charity Shelter can give you advice. For urgent help call 0808 800 4444.
Talk to our councillor to get the best options for you. Call us on 0800 389 6339 or complete our Enquiry Form
