The following information can help you to manage your debts:
- Prioritise your debts. Priority debts refer to those which can mean losing your home, having your gas or electricity disconnected, or going to prison. Once you've organised your priority debts, use any money left over towards repayment of other debts. The offers you make to repay your debts may need to be linked to the amount of money you owe on each of your debts.
- Do not borrow more money to pay off your debts without thinking carefully. This will get you further into debt. If you take a loan out from a loan or finance company you may be charged very high rates of interest. This could lead to more trouble for you in the future.
- Contact your creditors; people to whom you owe money. Tell them you are having difficulties. They may be able to offer you more affordable terms to help you pay off the arrears. Send them copy of your household budget, listing your income, expenditure (costs) and all of your other debts. They can use this to create a realistic repayment plan.
- Get advice on your tenancy rights before you go to court. If you have a defence to the possession action you could get legal aid and help from a solicitor before the court hears your case.
- Attend all court hearings to give your version of events and your financial situation. If you attend a court hearing and make an offer to repay the arrears, sometimes the court forces the creditor to accept your offer. However this depends on your situation and sometimes you will have no defence to a possession action.
If you need help to understand your situation contact the Housing Advice Team.
For further advice you can contact the organisations below: