Don’t ignore the problem

– the sooner you get advice about your debts, the easier it will be to deal with the situation.

Get some free advice
– think carefully before going to a fee-charging adviser when free, independent help is available.

Don’t borrow money to pay off your debts without thinking carefully
– always take advice before making this step.

If you have lost your job, or are off work because of illness, check whether your payments are covered by payment protection insurance
– and always read the small print of these policies.

Check that you are claiming all the benefits you can
– go to GOV.UK and look at the Benefits and Housing and local services sections. Citizens Advice Bureau can also help with benefit checks and help you through the claim process if needed. 

Make sure you tackle priority debts first
– some debts are more important than others – for example if you fall behind on rent payments you could lose your home or risk bailiff action if your Council Tax is not paid.

Work out a budget to help decide how much you can put towards repaying debts
– a money adviser can help construct a budget.

Decide on your best option for dealing with your debts
– a money adviser can identify the range of options you have and their various implications.

Take action
– after you have decided your route back to financial health, don’t delay.

Remember, you don’t have to struggle on your own
– free, independent advice is available from a range of charitable organisations. You can contact your local Citizens Advice Bureau for advice or support with your financial difficulties.

We would strongly recommend joining your local credit union for borrowing and saving. 

You could be wasting a lot of money paying back door step lenders.

For example:

if you borrow £100.00 and pay it back over 12 months you will pay:

Doorstep lender: Annual Percentage rate up to 177% - you would pay back £214.66p

Credit Union: annual Percentage rate from 12.7% - you would pay back £106.66p

This information was produced in partnership with Homes For Northumberland and Citizens Advice Bureau