We all suffer from changes in circumstance at different times in our lives, this happens quite regularly throughout our working lives mainly taking us by surprise.
It would be an ideal world if we could be sure that we were safe financially and that these debt problems associated with illness and redundancy would not affect our bank balances but unfortunately the impact can cause severe set backs creating the need for personal debt help.
If you have personal debts and are in a position where your monthly income has been reduced or stopped, you must find out exactly which benefits you are entitled to. The debts that should be paid first are your priority ones such as mortgages or rent, this includes council tax and utilities (gas, electric, water). These take priority over ALL unsecured debts such as overdrafts, credit cards and store cards, bank loans and doorstep or cash loans including catalogues.
Many people make the mistake of trying to maintain minimum payments on high interest unsecured credit agreements which should actually be the last items to be included within your expenditure, they should only be paid if you find that you have an amount of disposable income to contribute towards your unsecured debts once your priority living costs have been taken care of. That spare disposable income should be split up amongst your creditors on what is known as a pro-rata basis. This is a fair share based on the percentage of your total debt that a particular creditor represents. This is known as a debt management plan.
If you need help or advice regarding personal debt problems caused by a loss of job, less hours at work or being made redundant, then please contact our debt helpline in total confidence, our lines are open 24 hours and your call is free!