Guidelines on how to deal with debt and debt collection agencies.
This advice is from Heather Keates, an expert on debt who was interviewed for Dispatches.
-Talk to your partner about your problems - hidden money difficulties can be very divisive
- Find out what your income is and what you are spending. It's staggering how many people don't have a clue.
- Add up how much you owe
- Talk to your creditors about your financial situation
- If you are having problems with your bank, open a basic bank account with another bank and switch payment of your salary to that. Leave the first account open to maintain your overdraft.
- Check on the internet that you have the cheapest utilities and phone deals
- Cut up your credit cards
- Don't borrow to get out of debt, and, above all, don't secure any debt against your home
- Don't leave it too late to seek help
- Deal with debt collection agencies in writing wherever possible as you are less likely to be persuaded into repayments that you can't afford
- Don't agree to anything before working out whether you can afford it
- Seek free face to face advice if you feel threatened or unsure of anything
- Be honest about your situation and fill in a financial statement to show what repayments you can afford to make on a regular basis
- Do keep your creditors informed if your situation changes
- If you are unhappy about the way you are being treated do make a complaint and if that doesn't resolve it, take your complaint to the financial ombudsman
