I’m Struggling With Debt, Where Do I Start?
Debt can feel impossible when several bills, letters and payments are competing for attention.
Debt can feel impossible when several bills, letters and payments are competing for attention.
The first step is not finding enough money to clear everything. It is understanding the situation and identifying what needs attention first.
Get the full picture
List who you owe, roughly how much, the normal payment and whether anything is overdue. Open recent letters and check online accounts where you can.
If you do not know an exact balance, write down what you know. A rough but honest picture is more useful than avoiding the task because it cannot be perfect.
Separate priority and non-priority debts
Priority debts are those where non-payment can have particularly serious consequences. They can include rent or mortgage arrears, Council Tax, energy bills, court fines and some government debts.
Credit cards, unsecured personal loans and overdrafts are usually non-priority debts. They still matter, but the consequences are different.
Do not automatically pay the organisation that phones most often.
Work out what is genuinely affordable
Write down money coming in and essential spending such as housing, food, energy, travel and necessary household costs.
If there is little or nothing left, that is important information. Agreeing to unrealistic repayments simply moves the problem elsewhere.
Get free debt advice before choosing a solution
A debt adviser can check your budget, identify priorities and explain the options that fit your circumstances.
Debt Management Plans, DROs, IVAs and bankruptcy are very different. Do not select one because an advert promises to write off debt.
Take one action today
Open one letter, make the debt list, contact a priority creditor or arrange free debt advice.
Breaking the problem into smaller tasks can reduce avoidance and give you a clearer route forward.
7.50: Where Can I Get Free Debt Advice?
7.55: How Are Debt Management Plans, DROs, IVAs and Bankruptcy Different?
22.5: I’ve Stopped Opening Letters and Emails
Important information
This guide provides general information and is not intended to provide financial, benefits, debt, housing or legal advice. Individual circumstances can be different. Check current information from official sources and seek advice from an appropriately qualified or authorised adviser before making important financial decisions.