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What is debt

What is debt

Debt is any amount of money that is owed to someone else and is caused by many reasons. This may be because of low income, difficulty budgeting, unexpected bills or lack of priority.

There are companies which specialise in helping people budget and repay debt, however many of these companies charge for their assistance – spending money that can be better spent paying off debts.

What you should do if you are in debt

Make sure you still pay your priority debts first (rent, council tax, fines and utilities bills).

Don't ignore the debt, burying your head in the sand won’t make it go away! Contact the person, company or landlord you owe monies to without delay.

Think: where does your money come from? Do you qualify for any benefits to increase your income? You can check this at the Turn2us» , Entitled To» or the direct gov website».

Where does your money go? Can you cut out or down on any expenses? Do a budget plan and think what your priorities are – download our budget planner herehttp://www.adviceguide.org.uk/ or contact us for a paper copy.

For further information please download the following leaflet: Help & advice about rent arrears

Finally, be honest with the person you owe money to. They may not be able to ignore the debt, but as a company they need the money to provide the service they offer or as an individual they have saved the money or not had a treat in order to help you.

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