What should you do if you find you've overstretched yourself, or you lose your job and start struggling to keep up with your borrowing repayments? Here are some things you may want to think about
Speak to your lender
The first thing to do if you are getting into difficulty is to speak to your lender. It's often best to go and see them and take along a list of your income and outgoings. You can use our household budgeting calculator to help you.
- Your lender may agree to help you by reducing your monthly payments or letting you stop making payments for a short while, if you are just in a temporary fix
- If your problems are longer-term, your lender may be able to help you restructure your borrowings, so you can pay the money off over a longer period of time and reduce your monthly payments
It is up to your lender if they will agree to either of these - so it's really important you speak to them as soon as you think you may be in trouble - don't just miss your payments and hope they don't notice.
Do you have any insurance which may help you?
If you are struggling because you've been made redundant or can't work as you are ill, now is the time to check any insurance policies you have, to see if they can help. If you have taken out mortgage payment protection for your mortgage or payment protection on any loans or credit cards, you may find these provide some help.
Can you get any help from the government?
Depending on your circumstances you may qualify for certain state benefits, like unemployment benefit, housing benefit or disability allowances. Contact one of the sources below for more information.
Where to go for help
Don't bury your head in the sand. Here are details of organisations that may be able to help you. Contact any of the following organisations:
Citizens Advice Bureau
For details of your nearest bureau, look at their website at www.nacab.org.uk
Consumer Credit Counselling Service
You can call them on 0800 138 1111, or visit their website at www.cccs.co.uk
Advice UK
Contact them on 020 7407 4070, or visit their website at www.adviceuk.org.uk
National Debtline
Contact them on 0808 808 4000, or visit their website at www.nationaldebtline.co.uk
Money Advice Scotland
You can call them on 0141 572 0237, or visit their website at www.moneyadvicescotland.org.uk
Council of Mortgage Lenders
Visit the Council of Mortgage Lenders' website www.cml.org.uk - it has useful guides to state benefits for those with mortgages, dealing with payment problems and repossession.
