With the current financial crisis, prices going up, people being made redundant, more and more people are finding themselves in debt.
If you find yourself in this position then the most important thing is to take action early. Burying your head in the sand or putting the bills in the dustbin are not options. You need to face your problems head on.
There are numerous schemes and websites offering help with debt. Some are free, backed by charities, others involve fees. Make sure whichever adviser you get that you do so with your eyes wide open – investigate the costs and what exactly it is that they have to offer.
Of course anyone can set up a website and say that they are offering “debt advice” – in reality they may be offering little more than advertisements for loan companies who “consolidate” all your loans into one. Make sure that anyone you sign up with for help is registered with the Office of Fair Trading.
There are two initial steps to take. Firstly assess all your incomings and outgoings and budget your expenditure. Cut out all the non-essentials that you can. Secondly, with the help of your debt advisor sort out all unpaid bills – the amounts and who you owe them to. Your advisor can then send a letter to all your creditors explaining clearly your financial position and seeking to come to an arrangement with them.