How to Manage Your Debts

If you are having major money worries, the best thing to do is talk to someone about your debt. It can be hard to talk about debt, especially to a stranger but talking to a stranger can be the perfect place to start. 

Where to Find Free and Confidential Advice

You don't need to struggle alone with debt. There are Debt Advisers who can help you take back control of your finances. A Debt Adviser will never judge you or make you feel bad about a situation, always be happy to talk to you no matter how big or small your problem might be, find ways to manage your debts and suggest ways to deal with debts that you may not know about. 

Did you know you can speak to our staff helpline if you are struggling with debts? They can provide you advice and guidance on how to manage debts. The service is confidential and free to us. You can contact them on 0800 269 616.

Debt Emergencies 

If you are facing a sudden emergency such as court action, bailiff action or an eviction notice, go to an independent Debt Adviser urgently.  A debt adviser will be able to talk to the court, bailiff or creditor on your behalf. They will also advise you on what to do next.

What are Priority Debts?

Priority debts are those that carry the most serious consequences should you not pay them. These don't have to be the largest debts with the most expensive interest rates. This includes court fines, council tax, TV licence, child maintenance, gas and electricity bills, mortgage or rent, Income Tax, National Insurance and VAT. 

What are Non-Priority Debts?

The consequences of not paying non-priority debts are less serious. If you don’t pay non-priority debts, your creditor could eventually take you to court or instruct bailiffs to collect money from you. This includes overdrafts, personal loans, bank loans, money borrowed from family and friends, credit card, store card, payday loans, catalogue, home credit or in store credit debts. 

How to Pay off Non-Priority Debts Faster

You must pay at least the minimum payment on all debts to avoid falling behind. If you can afford to pay more share out the extra money in the following way. This will save you money on higher interest rates and will help you become debt free at a quicker pace. 

1. Make a list of all your non-priority debts in order of the most expensive to the least expensive. 

2. Target debt with the highest interest rate.

3. Check that you will not be charged any penalties for making an overpayment. 

4. Pay as much as you can afford without putting yourself in a financial strain.

5. Once the most expensive debt is paid, move onto your next expensive debt on your list.