Dealing with debt - charity support

The first thing to do if you'd like to try and take back control is to get a figure for how much you owe, which might sound overwhelming, but it doesn't have to be. Write a list of everything you owe, it might seem really scary, and the numbers can be overwhelming, but this is really important to start your journey.

When you're feeling like your finances are a bit out of control, people often bury their heads in the sand. You don't always pay attention to the different credit cards; the overdrafts, the finance, the buy now pay later services. It can just add up in so many different ways, and it's about tracking all of those places down.

Start by going through your bank statements line by line. A quicker way might be to get a free credit report from Experian, Equifax or TransUnion. This will allow you to see your personal finance history at a glance, allowing you to see your borrowing and repayments from the last six years.

Be careful because some of these companies might try to encourage you to pay for premium services, but you're entitled to a free credit report.

This is such an important step to help people feel a bit less overwhelmed because once you know how much you're spending, you have ripped the plaster off. Once you've got that list, you know what you've got to pay back, and you've started to take back control.

The next step is to make a budget so you can start to pay down some of those debts.

I'd say don't be afraid to reach out to a friend or family member, make a cup of tea and go through it together.

But essentially, you need to work out exactly how much you'll have coming in each month, exactly how much you'll have going out, and find the excess cash.

I'd also do the budget at the beginning of the month, so you could do a mini one now and another one in May. Budgets can be really helpful to know exactly where your money is going and to make sure you're not living beyond your means. I would also suggest building up an emergency fund, surprise costs like a broken boiler or new shoes for the children are never nice, having some money set aside for that can make surprise payments a lot less stressful.

If you do take that important first step in getting help, organisations will firstly ask you what you need help with, whether that's because you're late with a payment, you owe people money and don't know where to start, or you just need help managing your finances.

They will then ask you to describe your current finances, so make sure you have this ready for them. This will include how many bills you pay each month and the amount of money you make. Then they will ask you about your debt, how much you owe, who you owe it to and any payments that are currently due. They will also ask you about your assets and how much they are worth, and your housing situation. This is so they can get a broader picture of your current situation.

This can all sound really invasive, but from my experience with them, they are incredibly non-judgemental, really kind and helpful, so there's no need to be defensive or embarrassed.

It's really important to be honest and be an open book with the advisor because, using all of that information, they should be able to set up a plan with you. They can help you understand exactly what you owe, help you prioritise which debts you should look at paying first, and create a realistic budget that works for your lifestyle.

Importantly, they may also be able to speak to creditors on your behalf to help arrange affordable repayment plans, which can immediately reduce pressure.