What to Do When In Debt | Help with Debt & Money Worries What to Do When In Debt | Help with Debt & Money Worries

What to Do When In Debt

It can be difficult to find a route back out of debt when financial problems occur and most people don’t know what to do when in debt. It can be a complicated time and you may be unsure where to turn for help. Over 30% of people we help believe you can go to prison for being in debt and over half of people thought they would be in debt forever. You are not alone in dealing with debt and there is a solution.

Debt Support Trust is a charity helping people regain control of their finances and become debt free again.  If you need help with money advice or wish to discuss your debt options then please call our advice team on 0800 085 0226.

Help with Debt & Money Worries

There are a range of debt solutions available for people across the UK. Scottish debt solutions are different from the rest of the UK but everybody can find a route back out of debt.

Low levels of debt: If your debt level is low (e.g. less than £4,000) then you may wish to consider a token payment plan to your creditors. We can provide you with letters and guidance to send to your creditors. Your creditors could freeze your interest and accept a smaller payment for a period of time until your financial situation improves.

If your debt level is low and you don’t expect your situation to improve then you can consider entering bankruptcy. Our money advisors can help you decide what to do when you are in debt with tailored advice specific to you. Entering a debt solution like bankruptcy can be detrimental to your credit file so we would always recommend seeking professional debt advice first.

Disposable Income: In order to calculate how much money you have available to repay towards your creditors each month we review your finances to understand your disposable income. When you are in debt your disposable income is the amount of money you have left each month to pay towards your debt after you have paid your month expenditure, like food, rent/ mortgage and council tax.

Depending on your disposable income and level of debt we will be able to advise you on two or three debt solutions you could be applicable for. These debt solutions all have pros and cons but will help you to once again become debt free. Each debt solution will last a different length of time and your repayment amounts could vary, however we will explain these in full detail

What Route Should You Take To Become Debt Free?

The choice on the debt plan you enter is entirely your own. We explain the positives and negatives of every route and you can choose which option you wish to enter. If you need help starting your solution we can support you through this.

We help people throughout their debt plan to become debt free. If you would like our charity support to find out what to do when you’re in debt call 0800 085 0226.

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