There are many reasons why people find themselves struggling with money or in debt. It might be that something unexpected or out of your control has happened and you’re left feeling overwhelmed and anxious.

Below we’ve written some information and advice that will help you to budget your money, manage bills, find strategies for dealing with debt and deal with creditors. We have also listed usefuly organisations where you can get free, confidential and independent advice on a range of issues.

 

Below are some key words you might find useful when assessing your financial situation.

Jointly responsible: If you and another person share responsibility for paying back a debt, you are both ‘jointly responsible’. You will both be equally responsible for paying back the full amount of the debt, meaning that if the other person is unable to pay back their share, you will be responsible for paying back the full amount.

Severally responsible: You have a joint agreement with another person but you are only responsible for your agreed share, so if the other person is unable to pay back their share, you will not be responsible for paying it.

Credit: This is the name given to the money you have borrowed. It includes any loans, overdrafts, shop cards, or goods bought through catalogues or on finance.

Creditor: The creditor is the company or person that you owe money to.

Default notice: If you fall behind with payments, your creditor will normally send you a ‘default notice’ to formally warn you of any court action that might be taken. Default notices are recorded on your credit history for six years and this can affect your chances of getting credit in future.

Financial statement: This is the term used for your household income and spending, so is effectively your household budget. This is important when you’re dealing with debt as it will help you identify options for managing your money effectively.

Priority and non-priority debts: If you see a debt advisor they will divide your debts into two categories:

• Priority debts have the most serious consequences if you fail to make the repayments. Consequences could result in you losing your home, your utilities being disconnected, a fine or even imprisonment.
• Non-priority debts have less serious or less immediate consequences, for example your credit history might be affected or you might be subject to county court action.