What-To-Do-If-I'm-Struggling-With-Debt-Consumer-Debt-Help

What To Do If I’m Struggling With Debt

If You’re In Debt – You’re Not Alone

It can seem like the whole world is against you when you’re struggling with debt. But, what do you do if you’re struggling with debt? What can you do to get out of debt? What should you avoid doing when you’re struggling with debt?

Don’t worry! You’re not alone. In fact, millions of people in the UK is struggling with debt right now.

In fact, there’s a one in four chance that it’s you or someone close to you. But don’t let the anxiety cripple you – it’s time for action!

What should you do if you are struggling with debt? What steps should be taken so as to get out of debt and how quickly can this be done? What shouldn’t happen whilst dealing with consumer debt help struggles, and what could make things harder for those that need help with debt from companies like Consumer Debt Help?

Table of contents:

    Collecting Information About Your Debts

    Bring everything you have regarding your debts together, such as contracts, invoices, and statements. Your obligations might include things like:

    • credit card debts
    • council tax arrears
    • rent arrears
    • money you’ve borrowed from friends or family
    • energy or water bills

    Make a list of your obligations and note down the specifics of each debt. The following are some examples of these details:

    • who you owe the money to – this is your ‘creditor’
    • your account or reference number – this might be at the top of your statement
    • when you first missed a payment
    • how much you owe – this might be in a recent statement
    • what the creditor has done to get the money back – for example, sending you letters or taking you to court

    When it comes to writing down all of your debts, don’t worry; the most essential thing is that you’re beginning the process of dealing with them along with millions of other people in the UK.

    Check If You Actually Have To Pay a Debt

    If the law says you must pay a debt, you’ll be responsible for it. For example, if your municipality charges council tax or water fees, you will be responsible for those debts.

    If you’ve signed a debt agreement to say you’ll give money to someone, you’ll almost certainly have to pay it. This might be something like a:

    • tenancy agreement, if you rent
    • credit agreement, If you’ve just purchased a washing machine, taken out a loan, or added another line of credit to your account, it’s important to know what the differences are between each type before making any decisions.

    If you’re in charge of a debt, it’s known as “being accountable.” It implies you are legally required to repay the money. If you aren’t responsible, you should be able to challenge the creditor. A creditor is anybody or anything to which you owe money.

    Identifying The Debts You’re Responsible For

    You may not have to pay a debt if:

    • When you signed the agreement, the lender didn’t verify that you were able to pay back the instalments.
    • If you didn’t understand the contract or were forced to sign it, for example, there might be a problem.
    • It’s been six years or more since you made a payment or communicated with the creditor.

    Work Out And Decide Which Debts To Deal With First

    What are priority debts? They’re debts that could cause significant issues if you don’t address them.

    You must first determine which of your debts are essential debts and deal with them first. Make sure you’ve gathered all of the information you need about all of your liabilities.

    If you have any of these, they’re your top debts to pay off:

    Rent Arrears

    This is a must-pay debt since your landlord may throw you out of your home if you don’t pay. If they go to court to get a ‘possession order,’ this says when you have to depart. Your landlord can ask the court for a date for your eviction if you do not vacate by the deadline on the possession order.

    Mortgage Arrears or Secured Loan Arrears

    These are major debts because your bank or building society may force you out of your home if you don’t pay. Before they can evict you, they’ll need to file a lawsuit for a “possession order,” which specifies the date when you must depart. If you don’t vacate by the date specified on the possession order, your bank or building society can apply for a ‘warrant of possession.’ This means the bailiffs will throw you and your possessions out of your home.

    Council Tax Arrears

    This is a serious debt because your local council may take you to court if you don’t pay. If you have the funds but refuse to pay when ordered by the magistrate’s court, you risk going to jail. You won’t go to prison if you can prove that you don’t have the money.

    Gas or Electricity (Utility Bills)

    It’s a bigger issue if you owe money to your existing supplier since they may cut off your gas or electricity if you don’t pay. Your provider must allow you to make payments on your outstanding bills under a payment plan before they turn off your supply. They must provide you with seven days’ advance written notice before disconnecting your supply.

    Phone, Broadband and Internet Bill

    If you don’t pay your bills, the suppliers who provide you with credit can cut off your phone or internet service. They’re only major debts if it’s crucial for you to use a phone or the internet.

    You might, for example, rely on these devices because you:

    • have a disability or long-term health condition
    • are looking for work
    • need them for your job

    Tell your supplier when you call them if it’s crucial for you to use a phone or the internet.

    TV Licence Payments

    Because you may be fined by a magistrate’s court if you watch TV without a license, this is an important debt.

    On the TV Licensing website, check to see whether you require a TV licence. If you have the resources but refuse to pay a court fine, you risk going to jail. You won’t go to prison if you can prove that you don’t have the money to pay.

    Court Fines

    These are matters of critical importance since if you have the money but refuse to pay, you may be imprisoned. You won’t go to jail if you can prove that you don’t have the cash.

    You may get a fine from a court most commonly if you commit a crime, for example:

    • watching TV without a TV licence
    • speeding or breaking other rules while driving

    Making A Plan To Deal With Your Debts

    If you’re having trouble repaying your debts, such as credit cards or store cards, ask to make lower monthly instalments. It might be tougher for you to obtain credit in the future if you pay less than what is required in your agreement.

    Work Out What You Can Afford To Pay

    Determine how much money you have left each month after paying for necessary expenses and essential debts. This is referred to as ‘remaining income’ in financial terms.

    It’s also a good idea to send a copy of your budget to your creditors so they know what you’re offering as payment. It will demonstrate to them that what you’re willing to pay is reasonable.

    Work Out How Much To Pay To Each Creditor

    Check the ‘non-priority debt’ section of your basic financial report. It will provide you with how much to give each creditor.

    The creditor gets a portion of the debt based on how much you owe – this is known as a “pro rata” offer. It’s a method of treating all your creditors equally. You must complete this step or they may reject your offers.

    Consumer Debt Help Can Help If You’re Struggling With Your Debts

    If all of the above seems a bit daunting and overwhelming, then do not hesitate to contact Consumer Debt help via our website, as we’d be more than happy to hear from you and talk through the multiple options at your disposal for getting you out of debt as efficiently and ethically as possible.

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