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Tips:

• Make a list of your priority and non-priority debts (more information here)
• Work out your income and expenditure; be realistic with your costs. If you have any costs which are not essential or you could do without, try and make savings
• Any money left over will need to be distributed amongst the creditors. You will need to pay your priority creditors first - with the biggest payment going to the biggest debt and so on
• Write up a financial statement, including information about your income, your outgoings, each debt, how much you owe and how much you are offering to pay
• You need to contact all your creditors. If you do this by telephone always follow up with a letter stating how much you will be paying and how often. Include a copy of your financial statement. Ask the creditor to freeze the interest or other charges, to stop the debt from increasing.
• Some creditors will try to negotiate higher payments than you can afford; you may need to provide proof of your income and outgoings with payslips, bills etc.
• If you have any problems seek immediate advice - see here

Important Points

Do not promise to pay more than you can afford

If you have made an arrangement with a creditor make sure you stick with it.

If your circumstances change and you cannot meet the payments you first agreed, contact your creditor immediately. You will likely have to provide another financial statement.

If a creditor ignores your offer of payment or will not accept it, make the payments anyway and seek advice.

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