Getting out of debt

If you are struggling with debt issues and their related problems, we are sure we can help. Here in the Welfare Benefits Information Centre we have trained advisers who specialise in money advice.

We offer a free and confidential service to all the residents within the boundary of Preston City Council. The following advice should point you in the right direction:

• Don’t ignore the problem, burying your head in the sand will not help. It won’t go away and the longer you leave it, the worse it gets.
• Don’t borrow money to pay off your debts without thinking carefully. Get advice first. By borrowing more money you could be increasing your debt problems, thus sinking further into debt.
• Work out a budget. Add up all the money you have coming in every week or month. Remember to include wages for yourself and your partner and/or any benefits you receive, plus rent from grown children and anyone else who lives with you. Then add up all the money you spend, including your mortgage/rent, council tax, utility bills, water bill, housekeeping, car tax, insurances, telephone, TV licence and any debts.
• Make sure you pay your priority debts first. Don’t just pay the people who are knocking on the door first or the ones who keep ringing you. Priority debts are those which you would lose an essential service if you did not pay, for example, debts against your home, or those for which you could ultimately be imprisoned for if you didn’t pay such as council tax. Gas and electricity bills are also priorities as these will be disconnected if you don’t pay.
• Get in touch with your creditors. Do this straight away. Explain your difficulties. Go and see them, or phone or write to them. Very often they will be able to help. If the first person you speak to is unhelpful, ask to speak to somebody more senior who may be able to agree to help.
• Don’t give up trying to reach an agreement even if creditors are difficult.
• Finally, always keep copies of any letters you send or receive so that you can prove you have tried to reach an agreement if matters come to court.

The Welfare Benefits Information Centre also produces a Self Help Pack, which can be used in getting back on track with your debts. 

Download a copy below or contact us to request one.