Tips if you are in problem debt

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• Don't ignore debt. It won't go away, it will get worse.

• Get independent advice before you are tempted to borrow money to pay off your debts.

• When drawing up a budget, be honest, and don't try to hide debts. If you hide or leave existing debts out of your budget then the budget won't help you clear your problem debts.

• Take it one step at a time and sort out your most important debts first.

• Let everyone you owe money to know you are having problems. If you do not speak to them, they may start court action against you. If you do speak to them, they may be able to offer you a break from making payments or come to an agreement with you (for example, allowing you to pay back the debt in instalments).

• When talking to a large company, keep a record of names and the reference number for your case.

• Keep copies of all letters you send and receive.

• If you arrange to pay back missed payments in instalments, you should keep to the agreement, so make sure you agree to instalments you can afford.

• Check you are claiming all the benefits and tax credits you are entitled to.
  

• Don't try to deal with this alone. There are independent organisations that can offer you advice and support.

Citizens Advice offers advice about debt.