149 High Street 

Hurstpierpoint 

West Sussex 

BN6 9PU 

Debt counselling service

Debt help guide

If you are struggling to keep up with your monthly repayments and worry about spending more than you earn, help is at hand.

Constantly being in debt, living on overdrafts and accumulating large loans and credit card bills can cause a great deal of mental and emotional stress.

If you feel this way, seek help immediately. The best way to find completely free, impartial and confidential debt advice is through a charity such as the Consumer Credit Counselling Service (CCCS).

First things to consider

• Don’t extend your overdraft
• Stop using your credit cards
• Do not consolidate your debts into one new loan
• Do not borrow against your home
• Seek advice immediately

Good financial housekeeping
For many people, better financial housekeeping can ease some of the financial strain.

• Make a list of all your monthly income and outgoings in as much detail as you can
• Cut out any expenditures that you can do without
• Set a budget for all your important bills and purchases and stick to it

Once you’ve done this, work out some ways of increasing your income. Could you:

• Take on regular overtime at work?
• Get a weekend or part-time job on top of your regular role?
• If you own your home, consider taking in a lodger?

These measures can stop things getting worse and can also free up some extra cash to help you make your payments.

Debt solutions
For situations where the above measures are not enough, more structured debt solutions may be needed.

Debt help charities like CCCS can advise you on the best solution for your particular circumstances.

Debt management plans
A debt management plan (DMP) is arranged by a third party, like CCCS or a debt management company. They will approach your creditors to negotiate an affordable payment for you each month. You then pay this third party a monthly amount, which they divide amongst your creditors. Be cautious, as some debt management companies will charge a hefty fee for this service. CCCS and other free debt help providers will arrange your DMP at no cost to you.

Individual voluntary arrangement (IVA)
An IVA is a solution open to those owing more than £15,000. IVAs are organised by an Insolvency Practitioner and must be agreed by at least 75% of your creditors. An IVA is a plan of affordable monthly payments over a 5-year period. You may also have to pay lump sum on top. At the end of the five years, any money still owed by you will be written off.

Bankruptcy
To qualify for bankruptcy you must owe more in unsecured debts than you own in any funds or assets, including your home and any vehicles. If bankruptcy is the most suitable solution for you, it will write off all your outstanding debts. However, you will be subject to business and financial restrictions now and in the future. You may also have to give up all your assets. Seek professional and free advice before taking any further steps towards bankruptcy.

Get debt help today
The sooner you address your debt problems, the sooner you can regain control of your finances. Use the CCCS Debt Remedy online tool to get you started. It’s completely confidential, free and impartial and will give you instant advice specific to your individual needs and requirements. For more information and help on tackling your debts visit www.cccs.co.uk today.