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What to Do if You’re Struggling to Make Repayments

Finding yourself in a situation where you're unable to make repayments on debts or bills can be stressful and overwhelming. However, it's essential to approach the situation calmly and proactively. If you're facing difficulties, here are steps you can take to manage the situation.
what to do if you’re struggling to make repayments


Finding yourself in a situation where you’re unable to make repayments on debts or bills can be stressful and overwhelming. However, it’s essential to approach the situation calmly and proactively. If you’re facing difficulties, here are steps you can take to manage the situation:

1. Assess your finances

The first step in addressing the issue is understanding the full scope of your financial situation. Take a close look at your income, expenses, outstanding debts, and any other financial commitments. Identify areas where you can potentially reduce expenses or increase income. Creating a budget can help streamline this process.

💡 Take a look at this guide: How to check your credit score.

2. Contact your creditors immediately

If you think you might miss a repayment or have already missed one, it’s essential to communicate with your lenders as soon as possible. Most creditors prefer to work with you rather than take more drastic measures. Explain your situation and see if they can offer a temporary reduced payment plan, an extension, or even a temporary interest rate reduction.

3. Seek professional advice

There are several free debt advice services in the UK, such as StepChange and the National Debtline, that offer confidential and impartial advice. These organisations can help you understand your rights, suggest potential solutions, and even liaise with creditors on your behalf.

4. Prioritise your debts

Some debts are more urgent than others. For instance, not paying your mortgage or rent can lead to eviction, while defaulting on utility bills might result in service cuts. Prioritise these urgent bills first, while still making sure to communicate with all creditors about your situation.

a person is withdrawing money from a wallet

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5. Avoid accumulating more debt

While it may seem tempting to use one form of credit to pay off another, this can compound your problems in the long run. It’s crucial to avoid taking on new credit until your financial situation stabilises.

6. Consider debt solutions

If your debts are significant and you see no feasible way to pay them off in the near future, you might want to consider formal debt relief solutions.

These can include Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs), or even bankruptcy. However, each of these options comes with its consequences and should be considered after thorough research and consultation with a debt advisor.

7. Stay informed

Laws and regulations regarding debts and repayments can change. Stay updated on any changes that might affect your situation. Being informed also ensures you are not taken advantage of or pressured into agreements that aren’t in your best interest.

8. Stay positive and seek support

Financial difficulties can take a toll on mental health. Talk to friends or family members who can offer emotional support. There are also several mental health charities and organisations in the UK, such as Mind and the Samaritans, which can provide assistance.

Remember, while struggling with repayments can be daunting, many people experience financial difficulties at some point in their lives. By taking proactive steps and seeking the right support, it’s possible to navigate your way out of debt and towards a more secure financial future.

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