AVOIDING REPOSSESSION: dealing with mortgage arrears

This week I read in the papers that there’s a risk of increased repossessions in the UK, as mortgage costs are predicted to rise next month. Several lenders have already announced rate increases and others will probably follow.

Obviously mortgage is a priority debt and any arrears need to be sorted as soon as possible. In “Back to the Black” I felt I could do no better than quote what Citizens Advice say on the subject.

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DEALING WITH PRIORITY DEBTS: mortgage arrears (source: Citizens Advice: see below for link)

If you are in mortgage arrears then your first priority must be to find a way to clear them. If not, your lender can take legal action to have you evicted.

However, if the lender knows that you are making a serious effort to sort out your debts, they might allow you more time. Once more, the key is early communication: don’t sweep the problem under the mat.

Reducing your costs

There are several options for cutting down your mortgage costs. Depending on the type of mortgage, you might be able to:

  • switch from repayment to interest-only mortgage
  • increase the term
  • reduce your monthly interest payments
  • shop around for a cheaper deal with another lender. However, you may have to pay charges for the switch and you’ll still have to pay off the arrears.

Sadly, none of these is entirely pain-free. Solving the short-term problem could either involve fees, in the case of changing lender, or it could increase your interest payments long-term. Consult an independent financial adviser first if you are thinking of taking any of these steps and, once again, consult the lender. They may be able to help; but only if you get in touch with them.

Paying off arrears

Before you do discuss paying off the arrears, you should first work out your discretionary income; see elsewhere in this book for how to do that.

You will also need to decide how to pay off those arrears. You may have several options for doing this:

  • pay extra towards the arrears each month on top of your regular payments
  • have the arrears added to your capital and paid back over the remaining term; this will, of course, increase your overall interest costs
  • give up your endowment policy, if you still have one, or sell it to an investor, and use the lump sum towards your arrears; however, you will need to find another way to pay off the capital and you might also need to find alternative life insurance cover, so consult a financial adviser first.

Dealing with your lender

Once you have worked out a way of dealing with your mortgage arrears, write to your lender and set out your offer. It should be one which you can keep to and it should clear the arrears within the period of the mortgage. Include a financial statement showing how you have worked out the offer. If the lender resists at first, stress that an affordable offer is in both of your interests, because you are more likely to keep to it.

You should start to make regular payments against the arrears, even small ones. Even if your lender doesn’t accept the offer, it may help your case if you are ever taken to court.

If you haven’t been able to reach agreement on how to pay off your arrears, they will probably take you to court and try and get possession. However, the good news (if there is any good news in all this) is that, before they take you to court, they have to follow a fixed procedure called a protocol. This involves their taking a number of steps, such as discussing the reason for the arrears with you and giving you notice that they will start legal action if you have broken a payment agreement.

If you do go to court, the judge may allow you to stay in your property as long as you keep to an agreement to pay. The judge will take into account whether the mortgage lender followed the protocol. If you are in this situation, get help from an adviser.

If you can’t pay your arrears

If you aren’t able to clear your arrears, a court will probably give your lender permission to evict you from your home and your lender will sell the property. If they don’t make enough from the sale to cover the money you owe on your mortgage, you will have to pay the difference, which is called a shortfall.

If you can’t find any other way of clearing your arrears, it might be better to try and sell the property yourself, rather than wait to get evicted and let your mortgage lender sell it. This is because they are likely to get a lot less for it than you would, leaving you with a debt to pay. Properties which have been repossessed often sell for a lot less. Also, lenders often sell at auctions where sale prices tend to be lower.

Selling the property yourself and downsizing, or renting for a period, would give you a lump sum which you could use to pay off your mortgage; if you have enough left over, you may even be able to use it to pay off other debts.

Another option you may want to think about is a mortgage rescue scheme. These schemes are also known as buy back, sale and rent back or a sale and lease back scheme. These are schemes which offer to buy your property and rent it back to you. However, be very careful about signing up to a mortgage rescue scheme run by a private company. Not all these schemes are trustworthy and some companies will buy at below the market value. Schemes run by local authorities or housing associations are generally better, but there aren’t many of these.

Don’t be tempted to just leave the property and hand back the keys to your mortgage lender unless you’ve sold the property or there is a court order to evict you. You won’t gain anything because you will still be responsible for mortgage payments and buildings insurance until the property is sold, and will still have to make up any shortfall if the sale doesn’t make enough to cover what you owe.

If your lender asks you to give up the keys, you don’t have to do so unless they have a court order.

NOTE: This section on mortgage arrears has been based on an extract from the Citizens Advice organisation’s “Adviceguide” website. Readers who are in mortgage arrears should check that site for any changes to protocols.

 

WANT TO KNOW MORE?

Citizens Advice “adviceguide” website: LINK

 

 

 

 

 

 

DEBT AND THE IMPORTANCE OF MINDSET: CONCLUSION

AND FINALLY

A summary of the last six (what, six?) posts on this topic .

  •       Our thoughts influence our behaviour, which influences our results.
  •       It’s vitally important to stay positive when facing a debt crisis.
  •       Act as if you’ll be able to work your way out of this – and act this way consistently and persistently – and your behaviour will influence your creditors.
  •       Henry Ford: “If you think you can, or you think you can’t, you’re probably right.”
  •        “The Harvard Experiment”: the students were chosen at random, so were the teachers. The improved results were achieved because the teachers believed the children were more gifted than average.
  •        The traveller at the gate: “I think you’ll find they are the same here.”
  •        To minimise stress: create a clear positive picture of the result you want. Then keep it in the forefront of your mind.
  •        Create your own space: Seve Ballesteros and the bubble. Eliminate the negative influences of other people’s thoughts.
  •        Conduct all negotiations in writing. Avoid discussing on the phone: if you must answer it, simply note what is said, refer to previous correspondence, if any, and then respond … but in writing, not on the phone.
  •        Beware: letters apparently from “solicitors” and “debt collection companies” are sometimes really from the creditor. A neat tactic to put extra pressure on you without their going to the trouble and cost of involving third parties.
  •        Harassing debtors is illegal. If it happens to you, get help immediately. You can make a complaint to Trading Standards (via Consumer Direct, 08454 04 05 06), to the police if the harassment is severe or, if it is your landlord demanding money, your local council.
  •        Rules for correspondence: Prompt (replying). Polite, Professional & Persistent. (“If at first you don’t succeed, try, try and try again”)

 

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The above is the concluding extract from Chapter 2 (“Mind Over Matter”) of “Back to the Black: how to become debt-free and stay that way”. [LINK]

 

DEBT AND THE IMPORTANCE OF MINDSET, #6

Previously, on this blog …

I urge you not to conduct a negotiation on the phone. Simply take in what is said and offer to think it over and reply – but in writing.

Always respond both to written correspondence and to phone messages and do so Promptly, Politely, Professionally – and Persistently (i.e. sticking to your guns). In the resources section at the end of my book (see below for link) there are some examples of letter formats you could customise to your situation.

NOW READ ON …

Harassment

It is illegal for creditors to harass debtors. The following official definitions of harassment are taken from the website of the UK’s Office of Fair Trading.

 Physical/psychological harassment: putting pressure on debtors or third parties is considered to be oppressive. Examples of unfair practices are as follows:

  • contacting debtors at unreasonable times and at unreasonable intervals
  • pressurising debtors to sell property, to raise funds by further borrowing or to extend their borrowing
  • using more than one debt collection business at the same time resulting in repetitive and/or frequent contact by different parties
  • not ensuring that an adequate history of the debt is passed on as appropriate resulting in repetitive and/or frequent contact by different parties
  • not informing the debtor when their case has been passed on to a different debt collector
  • pressurising debtors to pay in full, in unreasonably large instalments, or to increase payments when they are unable to do so
  • making threatening statements or gestures or taking actions which suggest harm to debtors
  • ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment
  • disclosing or threatening to disclose debt details to third parties unless legally entitled to do so
  • acting in a way likely to be publicly embarrassing to the debtor either deliberately or through lack of care, for example, by not putting correspondence in a sealed envelope and putting it through a letterbox, thereby running the risk that it could be read by third parties.

 Source: OFT (Office of Fair Trading, UK) website, “Debt collection guidance: final guidance on unfair business practices.”

 

(However, I know from my own experience that many of the practices referred to above are used by many creditors.)

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To be concluded in my next post …

The above is an extract from Chapter 2 (“Mind Over Matter”) of “Back to the Black: how to become debt-free and stay that way”. [LINK]

 

DEBT AND THE IMPORTANCE OF MINDSET, #5

Previously, on this blog …

“Let the answering machine take the strain”.

Follow this strategy (negotiating only in writing), summon up your reserves of patience and persistence, and the huge benefit is that you avoid verbal discussions. They are just too stressful right now and, thanks to that wonderful invention the telephone answering machine, you need never speak to a creditor in person.

NOW READ ON …

When I say this, I am not advocating that you ignore telephone calls. No, you should respond if a creditor leaves a message but you do it in writing, referring to any previous correspondence and repeating your previous offer, if you have made one, or perhaps making an offer, if you have not done so. Alternatively you could simply state your position and ask for their understanding and for more time.

One slight disadvantage of the telephone “bubble” concept (Seve Ballesteros again – see my last post on this subject) could be that your friends might notice that you are never in, even when they expected you to be so. Is that a major problem? Probably not. If you have an actual answering machine, rather than the service from your telephone provider, then you can use it to filter your calls, by listening to the machine before deciding whether to pick up. If you have “caller display” on your home phone, or you are being called on a mobile, problem solved: you can be 100% selective about which calls you accept and which you allow to go through to voicemail.

Now I do recognise that there are some people who simply cannot resist answering a ringing phone. If you are one of those people and you can’t break the habit, then all I can say is that I hope you are someone who is not stressed out by this kind of situation, in which case you are in the lucky minority. In such a case, carry on following your instincts and answer the phone, but I would still urge you not to conduct a negotiation on the phone. Simply take in what is said and offer to think it over and reply – but in writing.

Always respond both to written correspondence and to phone messages and do so Promptly, Politely, Professionally – and Persistently (i.e. sticking to your guns). In the resources section at the end of my book (see link below) there are some examples of letter formats you could customise to your situation.

***

To be continued …

The above is an extract from Chapter 2 (“Mind Over Matter”) of “Back to the Black: how to become debt-free and stay that way”. [LINK]

DEBT AND THE IMPORTANCE OF MINDSET, #4

Previously, on this blog …

I had an American colleague who, every year, had major fights with his boss to negotiate more realistic (i.e. lower) sales targets. “I decided,” said Carl, “that I’d rather have a fight once a year at target-setting time, than have a fight every month-end.” In other words he managed his boss’s expectations downwards. That is fine for creating and managing the expectations of your boss or, dare I say it, your clients. But in managing your own expectations – and those of others with whom you interact while you are dealing with your debts – I hope you’ll agree with me that positive expectations are the way to go.

 

NOW READ ON …

Creating your own space

The celebrated and late-lamented Spanish golfer Seve Ballesteros told a wonderful story about how he developed a technique to protect himself from the negative thoughts of others, a technique that you might find useful in this as in other challenges in your life. “I realised that when I played an important match, all the other golfers, all their back-up teams and families all wanted me to play badly. I became so aware of these negative thoughts that it began to affect my game.”

What did Seve do? Simple; he decided to carry a bubble around with him. “Every time I stepped up to hit a shot, I imagined that I was stepping into a large bubble. Once inside, I was protected against the negative wishes of others”.

Could you borrow something from Seve’s idea? At certain points in your debt-management process, you will almost certainly be bombarded with payment reminders, final demands and the full panoply of the financial services industry’s “collection services”. You may even receive these communications as frequently as the offers of new credit cards and increased credit limits that you used to receive in the past – until the credit crunch and until the lenders realised that you had finally made the decision “enough is enough” and had decided to reduce your debts rather than routinely “revolving” them. By the way, did you know that the card company might have actually called you just that? Someone who only pays the minimum amount each month is called a “revolver”. If that’s what you did, you were exactly the client group they targeted. But that was then. You know better now.

The bell-jar

Maybe Seve’s bubble idea doesn’t work for you, so here’s a modification. Jack Black, the wise and witty Scottish author and trainer, has upgraded Seve’s bubble and he carries around an imaginary bell-jar. Any potentially stressful situation and he says to himself, “Bell-jar …ON!!” and then the slings and arrows of outrageous fortune cannot harm him.

If, on the other hand, you are the kind of logical, “left-brain” kind of person who would find the idea of personal bubbles or bell-jars – virtual or not – too off-the wall, here’s a practical strategy that can achieve the same results.

Negotiate in writing, not by telephone

In order to create space between you and your creditors, I recommend that you conduct your negotiations in writing only. There are all kinds of benefits here:

  • You have time to think before responding.
  • It will look professional; if you are not good at composing letters, there are some examples in the “resources” section of my book (see below for link), which you can adapt to fit your situation; or you can get an adviser to help.
  • You have a record of everything that has been said by both parties.
  • … and most importantly, it is less stressful.

“Let the answering machine take the strain”.

Follow this strategy, summon up your reserves of patience and persistence, and the huge benefit is that you avoid verbal discussions. They are just too stressful right now and, thanks to that wonderful invention the telephone answering machine, you need never speak to a creditor in person.

***

To be continued …

The above is an extract from Chapter 2 (“Mind Over Matter”) of “Back to the Black: how to become debt-free and stay that way”. [LINK]

DEBT AND THE IMPORTANCE OF MINDSET, #3

“Previously, on this blog …”

Why not decide what you want and act as if it were already a reality? Then three things could happen. One, you attract people who can help, as said above. Two, you get where you want, faster. Three, and most importantly, you preserve your health and sanity.

NOW READ ON …

Stress

How can we use our knowledge of how the mind works in order to help us in those first difficult days, when we have started to realise the situation in its entirety: when we have moved on from being in denial about our debt problem but we don’t yet have a plan?

Or, to misquote Kipling: “If you can keep your head when all around you are losing theirs… you don’t understand the situation.” Seriously though, this is a time when a little knowledge of your own thought processes can alleviate the worst effects of stress … and stress is a natural consequence of being seriously in debt.

We all experience stress at various times and a certain amount of it is positive; without it we wouldn’t get out of bed most days. What I’m talking about here is called in the jargon “distress” and it’s the right word.

It is sometimes said that the conscious mind can only hold one thought at a time. Buried in our subconscious mind, however, are millions of pieces of data. Some people liken the subconscious mind to the processor of a PC, and the conscious mind to the monitor or screen. Others prefer the analogy of an iceberg: what percentage is below the surface? Some of that data will be facts, some of it impressions or feelings, such as how you felt when you saw that final demand notice on your doormat.

Sadly, it is hard or impossible to control the way thoughts pop up from the subconscious mind on to the monitor of your conscious mind. If those thoughts are predominantly negative, then you will be stressed all the time. But, remember, the conscious mind can only hold one thought at a time. That thought might switch frequently if you have a butterfly mind, but you can help it along. How? By choosing to populate your conscious mind with a clear mental picture of what you want to happen, not what you fear.

On the other hand, you may have heard it said that “managing expectations” means creating low expectations in others, which can easily be exceeded. For example, many theme parks have signs telling you how long you’ll have to wait in line from a specific point. It’s well known that Disney states these times in a pessimistic way, so that the visitors will feel pleased that they got to the front of the line faster than they had expected.

The same is true in managing expectations in one’s boss. Years ago, when I worked in the chemical industry, I had an American colleague who had an annual fight with his boss in order to negotiate more realistic (i.e. lower) sales targets. “I decided,” said Carl, “that I’d rather have a fight once a year at target-setting time, than have a fight every month-end.” In other words he managed his boss’s expectations downwards.

That is fine for creating and managing the expectations of your boss or, dare I say it, your clients, if you have any. But in managing your own expectations – and those of others with whom you interact while you are dealing with your debts – I hope you’ll agree with me that positive expectations are the way to go.

***

To be continued …

The above is an extract from Chapter 2 (“Mind Over Matter”) of “Back to the Black: how to become debt-free and stay that way”. [LINK]

DEBT AND THE IMPORTANCE OF MINDSET, # 2

Previously, on this blog …

My daughters used to laugh about the fact that I always seemed to find a parking space, because I always believed I would (nowadays I don’t run a car, so I don’t need a parking space). My explanation was that because I believed I’d find one, I was relaxed about it, thus when a space became free I’d see it quickly. It’s said that if you are stressed (even about something relatively trivial, such as a parking space) part of your brain shuts down; it’s part of the so-called “fight or flight” reflex.

CONTINUED …

There is a more scientific demonstration of the power of positive expectations, which is sometimes called “The Harvard Experiment” because, although it was carried out in California, it was devised by a Harvard academic, Robert Rosenthal.

The power of positive expectations

The Harvard Experiment demonstrates the value of positive expectations; of ourselves and of others.

This is because our interactions with others reflect our beliefs about ourselves; other people, if they are perceptive, pick up quickly what we think of ourselves and what we expect to happen. Surprising as it seemed when I first heard this theory, they will often try to behave consistently with what they perceive our expectations of them to be.

There is other evidence of this so-called “expectations theory” in the psychology literature: the serious as well as the more popular versions. In case that kind of stuff is not your favourite bedtime reading, this summary of the Harvard Experiment is practical proof: something which sets an example that should be (but is not) followed in every school in the world.

Dr Rosenthal conducted the experiment in 1968, in a school in the San Francisco Bay area. His theory was that children could become brighter when expected to by their teachers and he conducted a study to test the theory. All of the children in the study were administered a nonverbal test of intelligence, disguised as a test that would predict intellectual “blooming.”

There were 18 classrooms in the school, three at each of the six grade levels. Within each grade level, the three classrooms were composed of children with above-average ability, average ability, and below-average ability, respectively.

 Within each of the 18 classrooms, approximately 20% of the children were chosen at random to form the experimental group. The teachers of these children were told that their pupils’ scores on the “Test of Inflected Acquisition” indicated they would show surprising gains in intellectual competence during the next eight months of school. The only difference between the experimental groups and the remainder was in the minds of the teachers.

At the end of the school year all the children were retested with the same test of intelligence. Overall, the children from whom the teachers had been led to expect greater intellectual gain showed a significantly greater gain than did the children in the control group. (if you want more info, you can do a search under Rosenthal & Jacobson, 1968).

Rosenthal’s work showed that having high expectations of others can influence their performance in a positive way and to a significant degree.

However there is one further point worthy of repetition. The only difference between the experimental group and the remainder was in the minds of the teachers. That “experimental group” of students, as Rosenthal calls them, was chosen at random. When this fact was revealed to the teachers at the end of the experiment, they were amazed because not only were the measurable results better, but they also reported other benefits, e.g. “behaviour was better; no disciplinary problems; it was a pleasure to teach!” The teachers then assumed that the remarkable results were because of their previously-known teaching performance. “No doubt,” said the principal, “but you were chosen at random too.”

Have the important role models in your life had high expectations of you? I hope they have. I was lucky to have three very positive role models in my younger life; my father Patrick MacMahon, my headmaster Fr Peter Murtough and one of my first bosses, Peter Mossop. All three had high implicit and explicit expectations of me, so I am sure that my behaviour reflected that (well, sometimes, anyway). All are now, sadly, dead. But whenever I am faced with a tricky situation I can ask myself: “what would PM have advised?”

Muhammad Ali and the power of positive expectations

The corollary of this is that I believe that the things that happen in my life are very much influenced by what I expect to happen. Muhammad Ali was famous for saying, “I am the greatest”, but he used to say it even before he was the Olympic champion, before he turned professional and became world champion. We in theUK are more reticent about proclaiming our talents, our strengths, our virtues, but there is a lesson to be learned from Ali.

The moral is this: I believe that if you expect something good to happen, it is more likely to happen, especially if that outcome depends to any significant extent on your interaction with others… as most outcomes do.

A traveller arrived at the gates of a city in the 14th century.

Before entering, he asked the gatekeeper: “What are the people like here?”

The gatekeeper replied: “What were they like where you came from?”

“They were wonderful people: they were friendly and generous and would share their last crust of bread with you”, said the traveller.

“You will find them the same here.”

A second traveller arrived and asked the gatekeeper the same question.

“What were they like where you came from?” said the gatekeeper.

“They were terrible people: they would steal from you at the slightest chance.”

“I am afraid you will find them the same here” replied the wise gatekeeper.

“Act as if …”

 An extension of this story is that while you are negotiating with your creditors, if you show that you expect to be debt-free in a given time, and that you’ll do whatever it takes to get there, and if you are persistent in acting that way, eventually you’ll find people who will help you. They may be employees or managers in the very companies to whom you owe money; they are just people doing a job, after all.

Why not decide what you want and act as if it were already a reality? Then three things could happen. One, you attract people who can help, as said above. Two, you get where you want, faster. Three, and most importantly, you preserve your health and sanity.

***

To be continued …

The above is an extract from “Back to the Black: how to become debt-free and stay that way”. [LINK]

 

DEBT AND THE IMPORTANCE OF MINDSET

In my last Personal Finance post (LINK), I mentioned the stressful effects of being in debt. I included contact details for several organisations that can help if the pressure of your debt problems becomes too much to handle.

A positive mindset, on the other hand, can reduce stress; it means looking for solutions rather than thinking only about the problem ( … and the conscious mind can hold only one thought at a time, or so I have been told). I cover this in Chapter 2 of “Back to the Black”, along these lines:

***

Debt and stress

Being in debt increases stress: you probably know that, if you have ever been in that situation. How we react to that stress greatly influences our success or otherwise in getting out of debt. Sometimes we seek external aids: we might drink more than we usually do, as I did. If we are smokers then we might smoke more, or if we are ex-smokers we might start again, as I did. Increased drug use of all kinds is often caused by debt.

However, the stress relief we might get from these is only temporary. Also it costs money, which is not what we want. There is a better and more long-lasting way to manage stress, which is to use our knowledge of how our minds and brains work.

Napoleon Hill, an early writer on the habits and characteristics of successful people, wrote, “In my youth, when I worked as a bank clerk, (this was back in the early 20th century, when credit was hard to come by) I could tell, before a man was 10 feet inside the bank door, whether he expected to get his cheque cashed.”

Confidence is key

What he didn’t say was that less-confident customers probably had their accounts scrutinised more closely before being given any cash. Thus being confident, or at least appearing to be confident, might have helped some of his customers to get cash or, in effect, to get credit despite their accounts not being “in the black”.

“That’s all very well,” I hear you say; “getting credit has not been my problem. That’s been easy; now I need to get out of the hole that easy credit got me into.” My contention, however, is that exactly the same principle applies here. On my wall is a slogan: “Act as if …” and it has served me well over the years whenever I was in a difficult situation. It’s a very adaptable, multipurpose slogan, meaning that if you act as if things are going well, or are about to go well, then you increase the chances that they will. It’s sometimes called the power of positive expectations.

You might well say that confidence, or maybe over-confidence, or excessively positive expectations, led you to the debt problem you have now. That may or may not be true but your prospects of getting out of this situation are greatly increased if you can manage to remain positive.

My daughters used to laugh about the fact that I always seemed to find a parking space, because I always believed I would (nowadays I don’t run a car, so I don’t need a parking space). My explanation was that because I believed I’d find one, I was relaxed about it, thus when a space became free I’d see it quickly. It’s said that if you are stressed (even about something relatively trivial, such as a parking space) part of your brain shuts down; it’s part of the so-called “fight or flight” reflex.

***

To be continued …

The above is an extract from “Back to the Black: how to become debt-free and stay that way”. [LINK]

 

DEBT AND DEPRESSION

In my book “Back to the Black”, I talk about the psychological effects of being in debt. In fact Chapter 2 is entitled “Mind Over Matter.”

I was pleased to see that this important issue was covered in a recent article by Simon Read in “The Independent” (17 March 2012). I’ll take the liberty of paraphrasing:

*****

Being in debt is a depressing experience.

“A trouble shared is a trouble halved”; but the annual report of Consumer Credit Counselling Service (CCCS) shows 25% of those in debt don’t share their troubles with friends or family.

It’s understandable that people don’t want to discuss their debt problems. They’re embarrassed that they might be judged.

Admit the problem; don’t delay

However, admitting you’re in financial trouble is the first step towards solving the problem.

CCCS also revealed that 45 per cent of people delayed seeking advice for more than a year after they started to worry they had a debt problem. Many of them had probably carried the worry alone.

Suicides

Many tragic suicides are caused by the worry of debt (and for every suicide there are ten attempted suicides). If those people had been able to talk about their problems, who knows what kind of future they may have had?

Talk to someone

Don’t just worry about debt. Instead look for a way to deal with it. There are many people and organisations that can help.

Help is at hand

CCCS (and the other debt advice charities: see below) are on hand to help.

All of them can help those in debt find ways to put their finances back on track.

Friends and family

Just talking to friends and family could be a good first step on the way to coping with the deep anxiety that money worries cause.

*****

I had intended to add some thoughts of my own to this; but I think that the article says what needs to be said. I’ve just added information about organisations that can help; see below.

*****

 WANT TO KNOW MORE?

 ADVICE ORGANISATIONS: CONTACT DETAILS

1. NATIONAL DEBT ADVICE CHARITIES

 (THESE ALL OFFER CONFIDENTIAL AND FREE DEBT ADVICE, UK-WIDE)

Citizens Advice (“The CAB”)

 Free advice provider; registered charity. Funders include central and local government, charitable trusts, companies and individuals.

Face-to-face interviews and telephone advice available at local Citizens Advice Bureaux (CABs). Find your nearest bureau in the phone directory, or search at www.citizensadvice.org.uk

E-mail advice available at some CABs

Advice line: 0844 499 4718

Online help also available: www.adviceguide.org.uk

CCCS (Consumer Credit Counselling Service)

Free advice provider; registered charity. Supported almost entirely by the credit industry.

Telephone counselling 0800 138 1111

Online help www.cccs.co.uk

National Debtline

 Free advice provider; registered charity. Part of the Money Advice Trust, (see below) funded by a mix of private sector donations and Government grants.

Phone advice and free factsheet orders: 0808 808 4000

www.nationaldebtline.co.uk

Credit Action

Money education charity, in partnership with CCCS (see above). Free online advice provider, plus the Spendometer (see Chapter 8), Money Manuals and other resources: www.creditaction.org.uk.

Their “Money Advice Map” signposts to local debt advice centres: www.moneyadvicemap.com/

***

 2. LOCAL INDEPENDENT DEBT ADVICE ORGANISATIONS ALSO EXIST IN MANY AREAS AND ARE TOO NUMEROUS TO LIST.

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 3. OTHER ORGANISATIONS WITH HELPLINES OR WEBSITES ON DEBT AND RELATED ISSUES

 

AdviceUK (to find a local money advice centre)

020 7407 4070

www.adviceuk.org.uk

 

Debtors Anonymous (worldwide community with telephone & online meetings)

www.debtorsanonymous.org/

… and to find contact details for local meetings inUK:

www.debtorsanonymous.org.uk/

 

Mind (charity & helpline that helps with mental health problems)

0845 7660 163

www.mind.org.uk

 

Samaritans (confidential emotional support)

0845 790 9090

www.samaritans.org

 

Saneline (support for mental illness)

0845 767 8000

www.sane.org.uk

 

Shelter (free housing advice helpline)

0808 800 4444

www.shelter.org.uk

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For the “Independent” article in full: LINK

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For info about my book “Back to the Black: how to become debt-free and stay that way” (paperback and eBook): LINK