Money Matters: Tackling Debt
In this week's Money Matters column, Wrekin's Debt & Energy Manager Dan Bebbington shares his advice with tackling debt.
Living with debt can be incredibly stressful, and many people are finding themselves in debt for the first time due to the cost-of-living crisis.
Facing your debts and looking for support is a brave and important step to take. There are many resources available to help you get back on track – but depending on your individual situation it might be worth speaking to an experienced debt advisor on what strategies are available.
I would recommend keeping track of your income and expenses and making a list of your debts.
Check whether you could be entitled to any benefits, look at where you could reduce any expenses, and engage with your creditors to see if there is any temporary support.
If you are struggling to stay on top of your bills, there are options available – and by facing up to your situation early on you can avoid stress and potential consequences further down the line.
Most energy companies can offer grants to help customers address debts, though some require you to seek free debt advice first.
An energy advisor may also be able to help – they can offer free low-energy devices and complete a health check on your bills.
If you know you are going to miss a payment, engage with the lender as soon as possible. Most lenders have a duty of care to their customers and need to support you with setting up an affordable repayment plan or signpost you to any support they may have on offer.
If you are at the point where you are receiving calls, letters and e-mails and don’t know what to do – please reach out for support.
A debt advisor can help you with a budget, liaise with your creditors and support you with options that may not be aware of.
It’s totally understandable that you might not feel ready to share your personal finances just yet. There’s a stigma when it comes to talking about money, it takes time to build the courage to make that leap.
But just know, anyone working within debt advice does this because they care and they want to help make a difference to your life.
There are plenty of organisations that offer free advice, and it’s generally recommended to start there before considering paid services.
Some reputable organisations include National Debtline, Step Change Debt Charity, and Citizens Advice. Wrekin customers can also get in touch with our Money Matters team.
It is also a good idea to start building up some savings, even if you’re still paying off debt. Saving little and often can help with those unexpected emergency expenses without needing to turn to credit.
I would recommend looking at savings accounts with good interest rates or looking at your local reliable credit union.
17th January 2024