Debt can feel overwhelming, especially when letters, emails or calls start to build up. Here’s how anyone struggling to get back on their feet can start taking back control. By Ben Ferris
Make a list
The first step is to create a detailed list of all debts. This should include who the money is owed to (the ‘creditor’), when payments were first missed, the total amount owed, account or reference numbers, and any action already taken by the creditor (such as sending letters).
While seeing everything written down can feel overwhelming, it is an important step towards resolving the situation.
Get organised
Debts should then be sorted into ‘Priority’ and ‘Non-Priority’. It can be tempting to spread payments across all debts, but focusing on priority debts first is usually more effective.
A ‘Priority Debt’ is one that could lead to serious consequences if left unresolved. These often include council tax, rent arrears, mortgage arrears, and gas or electricity bills (among others). Bringing these under control should come first, followed by ‘Non-Priority Debts’ such as credit cards, unsecured loans, water bills, and money owed to family members or friends.
Open up
Although this step can feel difficult, maintaining open communication with creditors is important. Informing them of current circumstances and explaining that steps are being taken to address the debt can help prevent further action. It is often possible to request time informally to seek advice and put a plan in place. If a debt is more than six years old and there has been no contact with the creditor during that time, seeking specialist advice before making contact is recommended.
Create a budget
Once priority debts have been identified, creating a budget can help clarify what funds remain after covering essentials and priority payments. It may also be worth exploring ways to increase income, such as checking eligibility for benefits or government grants, ensuring correct wages are being paid, or seeking support from charities.
Many people experience debt for a variety of reasons, including rising living costs, unexpected events, or changes in income. Taking action – even small steps – can help restore a sense of control.
