Worrying about debt is like driving through a very busy, strange city – you don’t really know where you are going or how to get there, it’s hard to understand the signs and you are scared about getting in the wrong lane or having an accident.
Think of this page as a series of signposts to get you the answers to your questions about debt as fast as possible. Good information puts you in control.
If you are worried about debt, why not bookmark this page?
Common debt worries
The most common subjects people worry about are:
- The rising cost of living – your credit cards and car finance may have felt comfortable a couple of years ago, but now things are getting very difficult. You may need help to deal with the debts. And there may also be help you can get with bills.
- Credit ratings – articles about how to improve your credit rating, default dates, should you close an unused credit card, how the different debt options will affect your credit score etc
- Dealing with creditors – sounds scary, but if you can’t repay your debt then it’s better to talk to a creditor than ignore the problem! Look at Making a payment arrangement and offering a token payment.
- County Court Judgments (CCJs) – is a creditor bluffing, what to do if you get sent court papers, can you avoid bailiffs if you get a CCJ, what about charging orders etc
- Given too much debt? If you look at the list of all your details and think it’s got stupidly large, much more than you can hope to repay, you may be able to win affordability complaints about some of the debts.
- Mortgages – can you get a mortgage if you have other debts, should you overpay your mortgage, will it go up a lot when your fix ends, etc
Want to clear your debt faster?
Debts may not be causing you sleepless nights but you may still be fed up with the amount of your salary that you are paying to the banks each month and worried this will never end. Find out about Snowballing, which also includes articles on debt consolidation and paying less interest.
Also have a look at the various articles on Better budgeting, which covers everything from emergency funds to apps that can help. If you have tried and failed to get to grips with your debts in the past, budgeting problems may be part of the cause.
Have some lenders simply lent you way too much, more than was sensible if they had really looked at your situation? You may be able to win affordability complaints about loans, overdrafts, credit cards, catalogues and car finance. See my page on Refunds which has links to separate articles for different types of debt.
A question about a debt solution
For detailed queries, look at the pages that cover a specific solution:
- snowballing (unusual name for the technique that lets you pay off your debt as fast as possible)
- debt management (DMP),
- Debt Relief Order (DRO),
- bankruptcy,
- IVA,
- full and final settlements.
You can ask questions in the comments below any of those.
Can’t decide what to do?
If your whole debt situation feels out of control, to get started look at A simple road map – the main debt options are snowballing, a debt management plan, a debt relief order, bankruptcy or an IVA. This “road map” is a very simple approach that helps you choose between them – and it’s surprisingly accurate!
Hard Choices – sometimes you can’t decide between two options and you need direct comparisons: DMP or bankruptcy? IVA or DMP? etc The main options are compared here.
Need more help?
Never click on ads on social media. They are trying to sell you an IVA – the only debt solution that generates large fees, which is why it is missold to tens of thousands of people.
Instead here is my list of good sources of debt advice, people you can trust.