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DEBT - Ten tips for getting out of debt

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If you find that after being made redundant you begin to experience financial problems, here are ten tips that may help.

1. First of all DO NOT PANIC and DO NOT IGNORE THE PROBLEM it won't go away on its own accord
   
   
2. Don't arrange to take out any further credit. You will only find that you will get yourself into worse trouble.
   
   
3. Make a list:
   
   - Of all the people you owe money to
   - How much you owe to each one
   - What type of debt it is. This could be credit cards, mortgage, overdraft etc. You should include companies even if you are up to date with your repayments.
   
   
4. Prioritise your debts listing those that have a drastic sanction like repossession i.e.: mortgage arrears (you will need to agree on repayments of these debts first).
   
   
5. Work out the total amount of money you will have available either on a weekly or monthly basis.
   
   
6. Check to see if you are entitled to any benefits. You may be pleasantly surprised.
   
   
7. Work out your expenditure and see if there is any way you can cut back but don't underestimate the amount you spend on essential items like food and fuel.
   
   
8. Subtract your expenditure from the available money you have each month.
   
   
9. Get in touch with your most important creditors first and try and re-negotiate your monthly repayments. Split any remaining money you may have from your calculations between your other creditors.
   
   
10. If you feel you can't cope handling your debts yourself speak to your loacal Citizens Advice Bureau as they will be able to put you intouch with a qualified assistant.

Other Help Sites

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DG_125