How do I get out of Debt? – Your options to debt relief

There are a number of organisations that can help you if you have debt

. Which one is right for you depends on your financial circumstances and personal preferences:

Money management problems (this is people that do have sufficient disposable income available each month to meet credit commitments after essential expenditure they are just not very good at abstaining from spending money on non-essential items) require budgeting advice. There are a number of websites (such as www.MoneySavingExpert.com) that provide free budgeting tools to help you keep track of your money and identify any problem areas that you can work on. There is also a free helpline that you can call (0300 500 5000) to speak to a CFEG (Consumer Financial Education Body) advisor. The deal specifically with financial capability issues.

If you are insolvent (you do not have sufficient income to cover both your essential expenditure and monthly your credit repayments), then there are a number of avenues open to you.

If you're struggling only with a secured debt such as a mortgage, you must go and speak to your lender immediately about your options.

If you have priority debt arrears such as Council Tax, again, you must speak directly to your local council as soon as possible. In extreme circumstances, where a magistrates court can be satisfied that you won't pay back a debt, as opposed to being unable to pay back your debt, you can be fined and even imprisoned.

If you have business debts through a limited liability company, you should call Business Debtline on 0800 197 6026. They are a government funded helpline that can advice on more complex business matters.

If you have unsecured personal debts then you can speak to a debt help (link) charity such as Debt Advice Foundation (0800 043 40 50), or National Debtline (0808 808 4000) over the telephone. They will consider all of the legal and informal options available to you and determine which one is most appropriate for your circumstances.

If you require face to face advice, you should speak to your local Citizens Advice Bureau (make sure you telephone them first as not all CABs have debt advisors). When making an appointment, you should keep in mind that many CABs over recent years have had long waiting lists.

If you have reached a stage where you are asking how do I get out of debt? then you have taken the first step towards financial stability and possibly a new start.

How do I get out of Debt? Your options to debt relief

By: James Cox

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