Worried about debt?

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:

• 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! From token payments to full and final settlements, these articles look at the best way to approach your creditors, will interest be stopped etc.
• 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
• Pensions and debt – articles including should you take money from your pension to repay debts? Is your pension safe if you have debts? Can you afford to pay into a pension if you have debts?
• Payday loans – payday loans have wrecked many peoples finances, trapping them into borrowing month after month. If this happened to you ask for a refund of the interest you paid – see How to ask for a payday loan refund which has easy template letters.
• Mortgages – can you get a mortgage if you have other debts, should you overpay your mortgage, what is a charging order 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 to get to grips with your debts in the past, budgeting problems are often the cause.

And if you haven’t tried to reclaim PPI, now is the time! It’s easier than ever and people that didn’t know they had PPI are getting refunds as they were automatically signed up to PPI without realising it. Money Saving Expert have full details on how to reclaim it – they know someone who got 47k back, that beats my record which is a lady who got 37k back. So read How PPI can get you out of debt and go for it!

A question about a debt solution

There is a Search box at the bottom of this page – you could ask your question there.

For detailed queries, look at the Guides to a specific solution – these cover what you need to know before you start one and the problems that can crop up when you are in one:

• snowballing (unusual name for the technique that let’s you pay off your debt as fast as possible)
• debt management (DMP),
• Debt Relief Order,
• bankruptcy,
• IVA,
• full and final settlements.

Can’t decide what to do?

If your whole debt situation feels out of control, here is how to get started:

• Get a financial selfie – an complete picture of your situation with all your debts, incomes and expenditures will make it much easier to choose the right way forward.
• 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 cant 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 trust anyone that cold-calls you about debt. They are trying to sell you something that will make them money – they may not mention other options that would be better for you. Here is my list of good sources of debt advice, people you can trust.