Almost everyone in the UK has some sort of debt, whether it's money owed on a credit card, a bank loan or overdraft, a mortgage, or even a loan from family or friends. If you are struggling to meet your monthly repayments, and if your completed budget sheet shows that your monthly expenditure exceeds your income then you need to take action - NOW.
You will need to send each company a copy of your budget sheet along with a list of any other creditors and the amounts owed to them.
To work out how much you can afford to pay each month, calculate how much you can afford to repay overall each month and pro rata that amount for each debt.
In my next blog post, I will show you a letter you can use to contact each of your creditors. This letter details how much you can afford to pay them and lets them know that you will increase your repayments if your situation changes.
As you are being open and honest, the majority of creditors will empathise with your situation and will accept your proposals. If they don't you need to take further advice from a nationally recognised debt counslling service. There are numerous companies that will do this for you but a lot of them charge a fee - don't waste your money as companies like the CCCS or the Citizens Advice Bureau offer you advice free of charge.
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