Debt and problem debt

What is debt?
Being in debt means that you owe somebody money. Owing money is not in itself a problem. Many people owe money, for example throughout the lifetime of their mortgage, use credit and other financial services and are able to manage their finances without any worries.

When is debt a problem?
Many people experience problems with debt. If you do not have enough money to meet all your necessary outgoings like food, rent and bills and to make the minimum repayments on all your debts then you may have problem debt. There are steps that you can take to prevent your debts becoming out of control. More information is available in the If things get serious section. 

If you are in financial difficulty, you may feel ashamed or scared and not want to talk to others about it. There are sources of help that will allow you to regain control and will not be judgemental.

To work out whether the money you owe is likely to cause you problems you can take the Financial Services Authority (FSA) Debt Test, use the CCCS Debt Remedy Tool or contact an organisation like Citizens Advice or another free, independent, confidential face-to-face advice service. If you are happy talking to someone on the phone, you could contact National Debtline, whose advisers can talk through your concerns with you. The National Debtline has a self help pack that contains all the information and standard letters you need to deal with your own debt problem.

This pack shows you:

• How to work out your personal budget.
• How to decide which debts to deal with first (priority debts).
• How to work out offers of payment.
• How to deal with court procedures.

If you would prefer, you could ask a friend or family member, your carer, your local Mind association, local advocacy service or other support service to help you contact someone for help. For details of your local Mind association see Mind in Your Area.