Where a qualified debt advisor recommends general advice we will help you identify ways to ease your financial position and provide tailored support for you.
For featured Debt Advice about a specific type of debt problem please click the relevant link below:
A qualified and regulated adviser can explore all your options. Call one of these charities for free information:
StepChange: 0800 138 1111
Debt Advice Foundation: 0800 043 40 50
Citizens Advice Bureau: 0808 223 1133
National Debtline: 0808 808 4000
Debt to Friends & Family
Debt to family and friends can cause relationship problems but a survey has shown that more people are being forced to borrow money this way to survive.
As the cost of living increases and unemployment continues to increase due to the coronavirus pandemic, people are turning to friends and family to help make ends meet.
The Aviva report has found that the average household in debt owes £2,000 to friends and family. This is the same amount as being borrowed on credit cards.
Why Do People Borrow From Friends and Family?
We’re experiencing a change in social beliefs surrounding debt. In the past, people often wouldn’t share their debt and money problems with anybody, including friends and family. However, as times get tougher and the availability of credit has been restricted, it’s a person’s nearest and dearest that are being asked to help.
Help Negotiating With Creditors
Often people struggling with debt are worried about speaking to their creditors, however by doing so they could negotiate a more manageable arrangement to repay money owned.
If you find yourself in temporary financial hardship, negotiating with creditors can give you extra time to resolve your present situation.
Before negotiating with creditors it’s important to know exactly how much money you have coming in each month and how much you are paying towards essential bills. This can be done by completing an income and expenditure.
You should only agree to repay what you can realistically afford and you should ask creditors t0 freeze interest and charges, some but not all will agree to this proposal.
It is important to speak with your creditors before they transfer the debt to a collection agent. Once the debt has been transferred it is highly unlikely you will be able to negotiate with the original lender.
Once a payment arrangement has been agreed it is wise to get this in writing from the company. The arrangement won’t be legally binding, however it will help show evidence of what has been negotiated, should you require it at a later date.
Statue Barred Debt
After a set period of time certain debts may become statue barred, which means creditors are no longer allowed to take any action.
If you believe your debt may be statue barred it’s important to seek debt advice and speak to your creditors.
Find out more on our statue barred debt advice page.