Dealing with debt
The first step when you think you are getting into financial difficulty is to admit that this may be a problem, as ignoring it won't make it go away.
First Steps of Dealing With Debt
If you are getting letters from the bank, utility company or any other agency, tearing them up and throwing them away won't help at all. If you contact the company concerned most of them will be able to help you get yourself sorted out. They are much more likely to help if you are honest with them and keep them up to date with how your are dealing with things, than if they have had to writge to you several times and been ignored.
Write down all your income and outgoings, and if you can meet all your payments and have a little to spare then set yourself a weekly budget for food, petrol etc. It may be that to help you deal with debts any luxuries are on hold for the foreseeable future and if that is the case then so be it. Always remember that keeping a roof over your head, being fed, kept warm and kept clean is far more important than having sky television or going out for a fancy meal.
You may decide that you would like to take on a part time job to give you that extra cushion but in the current financial climate that may be easier said than done, so don't rely on this being an option but certainly give it a try.
More Outgoings than Income?
If when you write down all your income and expenditure you find that there is a short fall, look if there is anything straight forward you can change such as cancelling or lowering a sky package, replacing a mobile contract phone with a pay as you go or maybe you are subscribed to a gym which you rarely attend? If so cancel it and look at paying as you go instead.
Help with Debt
If there isn't anything you can see and feel you need help, contact your local Citizens Advice Bureau who will most certainly have debt councillors they can refer you to. If you are concerned about repossession then contact your mortgage company to see if a payment holiday or an extended term can be arranged to reduce your monthly outgoings. Remember no one will help you unless you ask!
Helpful Debt Advice
Watch this simple video which explains what to do and more importantly what NOT to do if you find yourself in debt.