I have mortgage or rent arrears or I cannot afford my home

Borrowing money is commonplace in modern life and most people could not survive without it.  When it is well-managed, it is a convenient way of paying for goods and services and can allow people to “smooth out” temporary fluctuations in their income. However, the consequence of failing to manage your debt or of failing to take action when you have a problem can be the loss of your home.

Don’t despair! Many landlords and lenders will only take action to repossess your home as a very last resort. One of the most important things to do is keep in contact with your landlord or lender.  Explain your situation and that you are seeking help.

You may have problems in managing your money if you are -

* regularly extending your overdraft

* paying only the minimum monthly amount on your credit cards or store cards

* constantly being short at the end of the month; using high cost credit (e.g. door-to-door lenders)

* ignoring demands for payment from your creditors

* borrowing to pay off existing debts, particularly if it is a consolidated loan or a (second) loan secured against your home

* actual court action against you by lenders indicates that you have a real problem and should seek immediate help

TAKE THE TEST>>>>>>>

You can test yourself on how well you are managing your own debt by taking a test devised by the Financial Service Authority (FSA). The Money Made Clear website includes tips on how to avoid debt problems and how to manage your finances.

If you think you have a problem, the important thing is to take advice early and, if you require it, ask someone to give you practical help in managing your debt. There are some very helpful organisations who offer advice and assistance through their websites, over the telephone or face to face - see the list below.

The important thing is to take action now to deal with any problems, before they put your home at risk.

Useful contacts:

National Debt line

Website offering downloadable advice packs, budget forms and other materials.  Free, confidential and independent telephone advice service.

Tel: 0808 808 4000 free phone

Consumer Credit Counselling Service (CCCS)

Budgeting advice and step-by-step guide on how to manage your money

Tel: 0800 138 1111 free phone

Citizens Advice Bureau

Advice about debt and welfare benefits to help raise your income.  Local Cab may have debt advisors who can help you manage your debts.  For information about local bureaux, use the following link.

Debt line-Online

Specialist money advice agency based in East Anglia.  Associated with Norwich & Citizens Advice Bureau.  On-line budget calculator and other advice.

Tel: 01603 679678

Community Legal Service

CLS Advisors specialising in debt and welfare rights work at various locations in Essex. If your case is complex and free services at the CAB do not have the capacity to help you, AND you are eligible for Legal Help (formerly Legal Aid) you may be referred to a CLS advisor

Tel: 0845 345 4345

Credit Action

A national money education charity associated with the Consumer Credit Counselling Service. Website based service with downloadable advice packs etc.

Fool.co.uk

Independent money saving website, with tips on how to save money across a variety of types of expenditure.

Money Made Clear

The Financial Services Authority’s website, with advice on all kinds of financial products, with budget calculators and similar, plus details of their role regulating the financial services industry.

Money Basics

Independent information about money, aimed particularly at young people and students. Linked to Credit Action and the Consumer Credit Counselling Service.

Business Debt line

Free, confidential and independent advice for self-employed people and small businesses. Associated with National Debt line.

Tel: 0800 1976 026 free phone

Advice UK

All members provide free and confidential advice, but not all provide money advice. To find your nearest centre

Tel: 020 7407 4070