Step 4: Pay off your debts
Getting help when you can't cope with your debts any more
If you've reached a point where you feel like the debts have taken over, and you're no longer able pay your non debt-related expenses like rent, utility bills or any other payments you need to get help. If it hasn't already started, you're in very real danger of receiving letters and visits from bailiffs and debt recovery agents.
Your action plan:
- Get help. There are lots of free services that offer valuable advice on dealing with debt, they will help you draw up a plan so that you can tackle the problem. CCCS is the UK's leading debt advice charity. They offer free, confidential advice through their helpline and online service CCCS Debt Remedy. The online service only takes about 15 minutes to complete, is free, and you will receive a tailored advice plan to help you deal with your financial difficulties.
- Talk to everyone you owe money to, be honest about the scale of the problem and assure them that you are taking measures to get back on track with payments.
- Be honest with your family and friends, they may be able to help you, if not financially, at least in supporting you - and you'll feel less pressured to spend money you can't afford on keeping up with them.
- Think about ways you can boost your income. Could you take on a second job until you start to feel more in control of your debts? Could you take in a lodger to help towards the rent or mortgage?
- Talk to your bank if you haven't already, they may well have advisers who can help you work out a budget you can stick to.
It takes time, but with the right advice and a repayment program you can manage, you will start to see a difference and feel an enormous amount of pressure being lifted.