Getting into debt is not usually something that happens immediately, although it is often caused by one event, mistake or action, like losing your job or buying something that you cannot afford.
The danger signs that you are getting
into trouble are:
- You miss making a loan or card payment because you have a cash flow problem.
- You keep running out of cash and start to borrow money from friends and family.
- When bills arrive you stuff them in a drawer and try to forget about them.
- The amount of money you owe is going up because you are getting penalty charges.
The bad news….
Whoever it is you owe money to is definitely going to want to get it back - the ways that they can do this are:
- You can be taken to court and you may get a county court judgement (CCJ) which WILL affect your credit history AND you will get a big fat fine!
- The company may send bailiffs round to take away some of your possessions, once they have obtained a county court judgement against you and you have not met your payment obligations.
- If you have bought something like a TV or a car they can take it away.
Benefits
If you are not able to work or if you have a disability there are benefits that can be applied for.
Contact your local gateway for help about benefits.
Click here for information about where and who can help you with money problems.
Stopping it all going wrong!
The good news is that there is help out there - NEVER ignore your debts, they are NOT going to go away.
You need to control and manage your debts - not let them control and manage you.
The Citizens Advice Bureau (CAB) offer debt counselling help - they will not judge you or make you feel bad - they are their just there to help you.
It is VERY important that you contact the people you owe money to as soon as possible as you may be able to work out an affordable re- payment plan with them.
