In debt?

There are lots of reasons why people get into debt. It may be because of an unexpected change in circumstances or because of:

• Illness
• Disability
• Unemployment
• Bereavement
• Borrowing too much money.

The most common forms of debt include:

• Credit card debt
• Personal loans with finance companies
• Bank and Buildings Society loans and overdrafts
• Charge cards/store cards
• Catalogues
• Personal debts to friends and family
• Credit sale agreements
• Student loans
• Mobile phone debt.

Get Help

If you are in debt try not to panic, it may feel like it is getting on top of you but help is out there, you are not alone! The most important thing you can do is to deal with the problem straight away.

The key thing is don't ignore the problem. You may find it easier to speak to a trusted friend or family member, and then contact an expert organisation together. There are lots of organisations out there to help people in debt. Listed below are some of the main orgnaisations tehre to help you with debt.

Citizens Advice Scotland (CAS) - Deal with issues including money advice and debt problems. Many CAS bureau's employ specialist money advice workers. You can find your local Citizens Advice Bureau here. CAS alos have information available online at AdviceGuide and Citizens Advice Direct.

CCCS - The Consumer Credit Counselling Service has a free telephone number 0800 138 1111 (Mon to Fri 8am - 8pm). Find more information on the CCCS website.

National Debtline - The National Debtline can give free advice and provides information packs on dealing with debt. Call 0808 808 4000 (Mon to Fri 9am - 9pm, Sat 9.30am - 1pm). Visit the National Debtline website for more information.

Debt Advice Foundation - A registered national debt education and advice charity offering free access to a range of tools and practical guides on how to manage money effectively, budget and negotiate directly with creditors.

Debt mis(managment)

Avoid companies offering to buy your debt from you, or claiming your debt can be written off.

Be aware that some debt management companies:

• May mislead their customers about who they are, what services they provide and what their services cost. Some debt management organisation may imply that they are a charity or government agency when they are not.
• Do not explain all available options on handling debt, offer a solution which is not the best for the individual, or give bad advice which makes the financial situation worse.
• Charge fees for considering your case and will then reject it, charge high fees before any advice is given, or charge high costs but pay very little of this back to the creditors.

To be sure you know who you are dealing with, find out more about a company before you go and see them or hand over any money. If you need free and independent debt information and advice visit your local Citizens Advice Bureau or call the National Debtline Scotland.

Healthcheck

Want to make the most of your money? Take part in a free confidential financial health check from the Money Advice Service. Just answer some straightforward questions about you and your money and the health check will set out what you can do in easy steps.

Money Advice Service Health Check