Being in debt can mean different things to different people. But whether you owe one debt or more, the good news is you can take control one step at a time. In our 5 steps to tackling debt, you will find information on debt solutions and guidance on how to tackle your debt. There are also tools to help with understanding and planning your finances. MABS offers you free and full support from specially trained advisers by phone, online and in-person while you do it.
The solution you choose to tackle your debt has to work for you.
In MABS, we recommend that you:
- Take a breath while you look at the overall debt situation
- Take stock of income, spending and bills
- Think about your options
- Make a plan that tackles the whole problem
This puts you in the driving seat to reach a solution that works for you.
Step 1 – Gather together your financial information
Get a clear picture of what you owe and can afford to pay by making a list of all the money you have coming in and going out and of all your bills, debts and any assets you might have. You can:
- Draw up your own lists, or
- Use our My Full Financial Picture tool to do the adding up for you.
Read more about how to gather your financial information.
Step 2- Deal with any urgent and priority debts first
Deciding on and achieving a tackling debt solution can take time, so make sure to deal with any urgent debts as a priority. You can read about different types of credit, explore your options and to know when to act quickly.
You can find more advice about:
- What are priority debts and secondary debts?
- Your rights about how your creditors can demand repayment.
Read more about dealing with urgent debts first.
Step 3 – Look for any ways to improve your finances
Armed with your completed My Full Financial Picture, you can look for possible improvements before you decide the best tackling debt solution for you.
Read more about ways to improve your finances.
Step 4 – Think about ways to tackle your debt
There are many ways to tackle your debts – from money managing your way out of debt, to making informal arrangements, through to formal debt solutions available to you by law.
Read more about ways to tackle your debt.
Step 5 – Put your tackling debt plan into action
Once you have decided on how to tackle your debt, the sooner you act the better. Follow our tackling debt action plan to achieve your goals.
Read more about putting your plan into action.
Free and non-judgmental help and advice are available from MABS every step of the way if you need it.