If you are having difficulty paying your mortgage, rent or Council Tax, or have found yourself getting into debt, it is important to take action quickly. If you act fast, you can prevent yourself getting into arrears with your lender or landlord.
If you have already fallen behind there are things you can do. There are many organisations who will help you find a way to meet your monthly repayments and pay off any outstanding debt.
Do what you can...
Whether your arrears have built up due to a mortgage, loan or if you have experienced difficulty in making ends meet, making small changes and planning ahead can help you through troubled times.
Reduce monthly outgoings
Some items you pay out for each month are essential and unavoidable, such as:
- mortgage or rent payments;
- utility bills;
Once you have paid for items that you need you can then decide how much money you have left over to spend on entertainment and leisure. For special events such as Christmas and birthdays, plan ahead and try and save a small amount each month to help spread the cost. When it does come to spending, pay for items in cash rather than on a credit or debit card to make sure you only spend what you have budgeted for.
Try not to spend more than you have as this will only get you into more debt. But if you do not have enough money to pay for the essential items you may need to look for other solutions to make ends meet.
Increase your income
You may want to consider taking on another part-time job or some overtime to help pay off your arrears. If you have lost your job or are too ill to work, your monthly mortgage repayments may be covered if you have taken out mortgage protection insurance.
You may also be entitled to benefits to supplement your income through Housing and Council Tax Benefits.
If you still can’t produce enough money to cover your monthly outgoings, you should try to pay as much as you can. It is better to pay as much as you can afford off your debt or mortgage each month rather than pay nothing. If it reached a point where your home might be re-possessed, a Court will look more favourably on your case if you have made attempts to pay your arrears.