The first and most basic rule is “don’t just sit there – do something”: Debt problems never go away and they always get worse if you leave them. Creditors (the people you owe money to) will listen and will try to help – they don’t want you to become a bad debt. And, the less you communicate, the more pressure they will put you under.

You may be able to consolidate (take out a remortgage or secured loan to enable you to repay your other borrowings). This will improve your cash flow but will probably cost a lot more in the long run.

Or you can “snowball” – pay as much as you can afford on your highest interest debt and the minimum on all the others, then once the first debt is completely repaid, move to the next most expensive debt and so on: It is the fastest way to repay.

If you can’t do either or these – organisations like Citizens Advice Bureau will help you work out a debt repayment plan, but they won’t take money from you and distribute to your creditors.

So, if you can’t repay all you owe and don’t think you can do it yourself when it comes to debt, you should consider an IVA or Debt Management Plan.

For a better idea of how to solve your problems take the two-minute ClearDebt Analyser test now! This will give you a personalised initial assessment of what debt management route could be right for you, taking into account all the information that contributes towards making a successful proposal.

Take the ClearDebt Analyser test now!