BBC Summary: 8 Steps to Dealing with Debt

24 October 2008
The BBC wrote a quick guide on "How to Cope During The Downturn", covering issues such as repossession, keeping your savings safe, negotiating redundancy, protecting your pensions, and dealing with debt. 

In the past year, there's been approximately a 30% increase in people seeking advice from Citizens Advice Bureaux.  Here's a summary of the BBC's advice on managing debt, if your purchasing habits have been spiralling out of control:

  1. Be honest about your money issues. 
  2. Worried about what you owe? Take the BBC's Debt Test.  It's a bit fluffy, but a good holistic starting point.
  3. Do their Financial Healthcheck, supposed to "give you some tips for a healthier financial lifestyle".  I found this more useful than the Debt Test.
  4. Prioritize and Keep up to date: your accomodation/bills and tax should be prioritized over the latest pair of Espadrilles.
  5. For those with less serious money management problems, seek practical advice from the Citizens Advice website
  6. For those with more serious financial crises, try a licensed insolvency practitioner
  7. If you are struggling to pay your utility bills consider contacting the Government helpline (0800 512 012) Home Heat helpline (0800 33 66 99) and the Energywatch helpline (08459 06 07 08).
  8. Free advice groups include the Consumer Credit Counselling Service or the National Debtline.

Alternatively, consider selling off your new 2008 Aston Martin Vantage.  That means you get the Mercedes SLK for free, right?

[BBC]

TOPICS:   Banking   Debt   Mortgages   Economy

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