Debt

How To Deal With Debt

There are four things you should do to help you to deal with debt.

1) Find out what debts you have – Create a list of all the different types of debt you have and how much money you owe for each one. Put them into priority and non-priority groups as explained in the previous section. Make sure you are responsible for the debts, not somebody else. Some debts can be automatically cancelled if many years have passed and you have not been contacted by the creditor during this time.

2) Find out how much money you have – This will help you to understand how much you can afford to repay your debts. You can do this by reading your bank statement and looking at all the money you have coming in and what you need to spend every month on essentials such as housing costs, bills, food and clothes.

3) Maximise your money – This means finding ways to increase your money. You can do this by applying for charitable grants, doing a benefit check to make sure you are getting everything you are entitled to, and saving money on what you spend, for example by using a comparison websites to find the best deals to minimise the cost of your bills so you have more money left at the end of the month. You can do a benefit check here, or a grant search here.

4) Choose a debt solution – Different debts need different solutions. For example, some debts may be written off if you can’t afford to pay anything and your situation is unlikely to improve. This means the creditor will cancel the debt and you do not have to pay anything. Or you can negotiate a repayment plan for the debt which means paying the debt back in small amounts depending on what you can afford. There are also more complicated formal solutions which are explained in other sections.

DeafPLUS are here to help you if you need any support with your debt problem.

Our Debt information has been developed in partnership with The Money Advice Trust.

Date modified: September 22 2021 | Date created: June 16 2021
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