We can all fall on hard times now and again. A simple change in our situations can have a large impact on our finances and our ability to pay back the debts we owe.

If you find yourself struggling and unable to pay back your debts, there are some practical dos and don’ts to help you get back on track and find a sensible solution to your problem.

1. Don’t panic

So, you’ve missed a payment, and you know you will continue to struggle to pay back what you owe. Don’t panic – if you immediate take action, bailiffs are not going to turn up on your doorstep and you’re not going to be sent to prison!

2. Don’t borrow more

Borrowing more money is not the answer to this problem – it will only make your position in coming months more difficult as the amount you need to repay will increase. You are in a financial hole, take control and stop digging by adding to your debt.

3. Don’t ignore the problem

As much as you want it to, your debt isn’t going to disappear on its own. Burying your head in the sand will only make the problem worse, and then the bailiffs really will be getting in touch! Plus, if you have late payment charges, your debt problem is only getting worse. It’s time to open the letters and pick up the phone, and find a solution to your problem.

4. Do prioritise

Some bills are more important than others.

Your priority debts and bills are payments such as; mortgage/rent, gas and electric, car repayments, tax debts, child support and maintenance and parking fines.

Non-priority debts are payments such as; credit card and store card debts, payday loans and unsecured bank loans.

You also need to consider your essential expenses such as food and transport to work, ensure you cover your everyday living and priority debts before paying off your consumer debts.

5. Do contact a debt adviser

Of course, we would say this! – But if you feel that a debt is slipping further and further out of your control, it is time to ask for help. You are never alone and a debt adviser can find you a solution. We can talk to creditors on your behalf and make your life much easier.

If you have fallen into debt and are struggling to get out, please contact us today! We can help you find a solution. Click here to contact us or call Clive on 01656 661426.