Debt Solutions

Golden rules to give peace of mind and freedom to enjoy life:

• Never borrow to cover routine spending. Only borrow for a specific purpose - for example, house or car purchase, home improvements.
• When deciding how much you need and can afford, always allow a margin for unforeseen events - like a significant rise in interest rates, illness, or a reduction in bonus.
• Always shop around for the best total deal: interest rates are not the only factor to take into account. Look at up front admin/arrangement fees, compulsory insurance, whether early repayment is allowed.
• Always read the small print. This is where the rip-offs are hidden. Don't assume that because you are dealing with a big name bank or other financial institution they won't try to rip you off. Remember banks have made huge profits in recent years and they don't make these profits by great management skill. They make them by ripping off their customers!
• If problems arise, don't ignore them. They won't go away and the longer you leave them, the worse they get.
• Don't borrow more money to pay off existing debts without thinking hard about the consequences - particularly if the new loan is secured on your home.
• If you are facing financial problems always check that you are claiming all the benefits and tax credits you are entitled to.
• If you can't meet debt repayments, contact your creditors straight away to explain your difficulties. Write, phone or if they have a local branch, go and see them.
• Don't get involved with debt management companies. They will probably make matters worse.
• Make sure you tackle your priority debts first - particularly those where non-payment could mean the loss of your home: mortgage, rent, secured personal loans.
• Seek advice at the earliest possible time from organisations like the Citizens Advice Bureaux or National Debtline. Remember a lot of people have debt problems, and you may have to wait for detailed expert advice, so get in the queue.
• If your creditors take you to Court, make sure you reply to Court Papers within the time limit.
• If you reach agreement on repayment, with your creditors or the Court makes a payment order, you must stick to it. If your circumstances change for the worse, go back to your creditors or the Court and explain why you can no longer pay what was agreed.
• Keep copies of all letters to and from creditors and the Court.