Some advice and information for people in debt
A variety of organisations offer debt help, and they often offer it for free. But what form might that debt help actually take?
Budgeting
Budgeting advice is just one form of debt help that a debt expert may be able to provide.
Budgeting is all about understanding and controlling your finances - the money you earn/receive (your income) and the money you spend/pay out (your expenditure).
You'll need to calculate your total monthly income and your total monthly expenditure. This may sound simple, but it can often be quite complicated. For example, although some costs may be easy to predict - such as rent or mortgage payments - other things such as the cost of petrol, food or social activities may be harder to work out.
Once you have calculated these amounts, you should be able to see exactly where your money is going each month - making it easier to plan ahead - and work out where you are spending money that you should be using to repay your debts.
Negotiating
Another form of debt help that is often offered for free is advice on negotiating with creditors.
If your circumstances have changed - and/or your debts have simply grown too much - and you can no longer afford to meet the repayments on your debts, then you should contact your creditor(s) and discuss your situation.
Before you contact your creditor(s), it is important that you're able to explain your situation to them. For example, you will need to know the answers to questions like 'Why can't you afford your repayments at the moment?' and 'How much could you afford to put towards your debts right now?'
Before you speak to your creditor(s), you may want to speak to a professional debt adviser to make sure you are fully prepared.
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