Finance
Debt counseling could be the answer to your personal financial problems. Maybe you've lost your job through ill health or been made redundant - the bills keep mounting up and you've no money to pay them.
- The longer you leave the problem, the worse it is likely to get
- Unopened bills don't disappear
Steps to take
- Cut down on any overspending
- Prioritise your debts
- Get specialist help
- Don't ignore your creditors - try to negotiate terms with them
- Work out what you can afford to repay
Loans
- Consolidation loans may help - but they are expensive
- Your bank may also help you
Debts to pay first
- Mortgages - to avoid repossession
- Council tax - failure to pay can lead to a court summons and prison
Mortgage arrears
- Even if you are in arrears it may be possible to get a re-mortgage
- This may well be expensive - but better than losing your home
Repossession
- If the lender sells your home for less than you owe them they have several years to start chasing you for the balance - between six and 12 years
- It is possible to negotiate a reasonable repayment plan