This guide is just a start and unfortunately there is no magic wand to wave. If you wish to discuss your debt with someone we would recommend the charity Credit Action (www.creditaction.org.uk)

To help in such situations, Credit Action has produced a useful self help guide which we have adapted (ever so slightly and the key messages remain the same) for the WelcomeHome website. It is a practical manual that offers clear, step-by-step advice on all the major difficulties:

• How to prepare a financial statement
• How to prioritise your debts
• How to negotiate with your creditors
• Where you can go for help

Because of the nature of this guide, simplifications and generalisations have been made.  Dealing with debt is often complicated and an extremely personal thing therefore we cannot be held responsible for any action taken (or indeed not taken) by readers based solely on the contents of the articles produced on the WelcomeHome website. Anyone facing serious debt problems must seek expert advice and one service you could turn to is the Consumer Credit Counselling Service (CCCS) helpline on 0800 138 1111.

Introduction

Congratulations! You have taken your first step to finding out more about debt and how to fix it. Admitting that you are struggling and seeking help is an important first step towards resolving your debt problems. Ignoring the issue will not make it go away and will make things worse. 

This guide is designed to help you deal with personal debt because there are many things you can do to regain control of your financial situation.

Here are some positive things you can do; all of which are explained in detail later on in this guide:

• Stay calm and do not feel afraid or guilty. Advice and support is available.
• Don't be tempted to borrow more money to pay off existing debts - this causes a nasty downward spiral and eventually creates even more problems. Make a list of all your creditors and debts.
• Prepare a statement of your financial position, detailing your income, living expenses and other commitments, and the balance (if there is anything left) available to clear your debts.
• Communicate and make your creditors aware of your situation - they will usually respond sympathetically to genuine problems.
• Communicate with your family and friends so that you can share your problems – they will often help you work towards a solution.
• Communicate with other agencies who can give you specialist free advice

You can contact the Consumer Credit Counselling Service (CCCS) helpline on 0800 138 111 (freephone).

It is available Monday to Friday 8am to 8pm and provides free advice.

You should also consider contacting your local Citizens Advice Bureau for help.

Money problems often arise from or lead to family, health or emotional pressures and it is important that you seek professional help for these related problems too.

Keep going and do not despair! Clearing your debts can be a long process however there is light at the end of the tunnel and the end result will be worthwhile and will put you back in control of your financial situation.

We will now look in more detail at the practical steps you can take to resolve your debt problems.

This guide is for information only. It does not constitute financial advice.