Being in debt is stressful and it's natural to feel as if the debts are taking over your life. Owing your friends money or not being able to pay off credit cards can snowball out of control. It is important to keep your money and spending under control; most people borrow money at some time especially for unexpected expenses, but debt can become a concern when you owe more than you can afford to repay. You need to know where your money is going every month, so you can keep your spending under control.
Usually you'll find it’s not the big things that are hitting you where it hurts, but the small things. Sandwiches, drinks or impulse buys all soon mount up. The important thing is to stop spending! This is so obvious it shouldn't need saying, but it's one reason people get into debt in the first place.
- Add up everything so you know exactly how much you owe.
- If you are not sure where your money is going spend two weeks writing down everything that you spend. (It's amazing how you can see exactly where your money goes when it's staring you in the face.)
- Write down all essential spending and see where you can cut back. Work out a budget and stick to it.
- Tell someone you can trust – they will help you manage your debts and get back in control.
- If you have store cards or credit cards it is a good idea to destroy them. That way you know you can’t use them.
- Think about the amount you spend on your phone-bill or amount you spend on nights out.
- Talk to the people you owe money to. If you explain the situation they often put together an easier repayment loan.
- Find out if you are entitled to any benefits or tax reductions.
You can read our section on budgeting for more tips on managing your money and links to websites that can help.
National Debt Line: 0808 808 4000
Connexions – Direct: 080 800 13 2 19
Consumer Credit Counselling Service
The CCCS offers free advice and support for anyone struggling with debt.
Citizen's Advice Bureau
Their webite has lots of information that will help you manage debt and deal with creditors.
Money Made Clear
Information from the FSA - site includes a free financial health check and advice on managing debt.
Money Money Money
A practical guide to basic finance.
Moneystuff
The moneystuff website has information for parents, teenagers and students on all sorts of money issues.
National Debtline
The National Debtline offer free independent confidential debt counselling services.
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