To take control of your debts, the first step is to understand how much you owe to whom. The second is to understand what needs to be paid back first.
Checking your credit file as a first step will help you. Your credit file will contain information about most of the debts you have, it holds details about your mortgage, loans, credit cards and any other credit you have taken out.
You can get hold of your credit file by going to companies including:
- TransUnion (formerly Callcredit)
With each debt it is helpful to know – how much you owe; when payments are due (and if you have missed payments, when the next payment is due); how much interest you are being charged; what could happen if you can’t make your payments for each debt. It is important that you prioritise the debts that are most important – these are usually the ones that are related to keeping your home.
If you cannot meet the terms of your debts and are unsure what to do, get help. You can get free support through both the Citizens Advice and StepChange.