‘How can I escape debt?’
QI’ve had to borrow money to pay my bills, but now I’m struggling to afford the repayments. Where can I go for help?
June Swynar, Cornwall
Faith says: Start by making a list of what you owe where, including minimum payments, any interest rates and if you are behind with any payments. Then tot up any money coming in, for example from wages, benefits, credits and pensions.
If you can afford minimum repayments after essential expenses, you could pick one debt and use any spare money to pay it down until it is cleared and you can move onto the next. If you only have problems with one or two debts, such as your bank or energy provider, you could also call them to see if they can do anything such as decreasing or delaying payments. However, if your debts are too big, this isn’t going to work for you.
Andy Shaw from debt advice charity Step Change says: “Seek help as soon as you are beginning to struggle.
“Warning signs are if you regularly find yourself without enough money left at the end of the month, struggle to afford essential bills without going into your overdraft or keep spending more on credit cards so your balance is going up.”
If you are having problems, and particularly if you are threatened with bailiffs, court or eviction, get help from a debt adviser.
Sara Williams, a debt expert who blogs at debtcamel.co.uk, says: “It’s best to talk to one of the big charities that specialises in helping people with debts – Citizens Advice, National Debtline and StepChange. And Business Debtline if you are self-employed or have a small limited company. They can explain the pros and cons of all your options so you can choose.”
The government website Money Helper has a ‘debt advice locator’ to find free debt advice services across the UK, whether in person, online or by phone.
A debt adviser will never judge, but can help sort out which debts to deal with first, suggest solutions you might not have considered and check you have applied for all the benefits you are entitled to. They may even be able to communicate with your creditors for you.
Check sites such as Turn2Us to see if you qualify for any benefits and grants, while the new Household Support Fund offers help with essentials such as food, clothing and energy bills.
‘Seek help as soon as you are beginning to struggle’