Struggling with repayments? Here’s where to start

Perhaps your hours have been cut, a bill has gone up or a repayment that used to fit your budget no longer does. You don’t have to wait until things get worse to ask for help.

Talking about debt can feel uncomfortable. A clear picture of what you owe, and a conversation with the right person, can make the next step easier.

Which payments should I deal with first?

Start with the consequences of missing a payment, rather than the size of the debt or the number of reminder letters.

Rent or mortgage arrears, Council Tax or rates in Northern Ireland, and gas or electricity arrears can have serious consequences. These are examples of priority debts. MoneyHelper’s bill prioritiser helps you identify what needs attention first.

If you have a court date, an eviction warning or a threatened disconnection, get debt advice urgently. Keep letters and notices so an adviser can see what’s happening.

What information could help?

Make a simple list with:

• who you owe and how much;
• the usual repayment amount and due date;
• any missed payments or notices;
• your take-home income and essential household costs.

You can still ask for help if you don’t have everything ready. An adviser or creditor can help you fill in the gaps.

You don’t need a perfect spreadsheet. Statements, letters and a few notes are a useful starting point. Work out what you can realistically afford after essential costs, rather than offering a payment you can’t keep up.

Can I ask the lender to change my repayments?

Yes. Contact them as soon as you think a payment will be difficult, or now if you’re already behind. Explain what has changed and ask what support is available.

Depending on your circumstances, you might discuss smaller payments for a period, a different payment date or another arrangement. Ask how any proposal affects interest, charges, the total you’ll repay and your credit record. Get the agreed terms in writing.

You can use a simple opening: “My income and essential costs have changed, and I’m struggling with the current payment. Can we discuss an affordable arrangement?” MoneyHelper explains more about talking to your creditor.

Would another loan solve the problem?

Combining debts can look simpler, but a lower monthly payment can mean paying for longer and paying more overall. Taking new credit to cover existing repayments may make a difficult situation harder.

Before taking on more borrowing, speak to a free debt adviser. They can help you understand options that fit your circumstances.

Where can I get support?

MoneyHelper’s Debt Advice Locator lists free, confidential services across the UK, with online, telephone and face-to-face options.

In England and Wales, an adviser can also check whether Breathing Space is suitable. It can give eligible people temporary protection on qualifying debts while they get advice. It doesn’t write off the debt or remove the need to make repayments. Scotland and Northern Ireland have different arrangements; ask an adviser about the support where you live.

One small step: choose the priority bill or repayment you’re worried about most, then contact a free debt adviser or the creditor today.