Dealing with debt

This content applies to England only.

Housing laws vary between England and Scotland. This page applies to England only. Get advice relating to Scotland

With credit cards, store cards, overdrafts and bank loans readily available, it's easy to slip into debt. Most housing problems start because of financial difficulties, so if you do find yourself getting into debt, take action as soon as possible.

Are you in debt?

Tell-tale signs that your debts could be getting out of hand include:

• missing more than one repayment on a store card or credit card
• refusing to open bills or bank statements because you're afraid of what they'll say
• borrowing money from friends and family that you know you'll never pay back
• borrowing on one credit card or bank account to pay off another one
• paying off the interest on your loans yet never reducing the loans themselves

Use this calculator to help you get to grips with your finances. This will help you add up your income, your outgoings and your debts, and find out whether you end up solvent.

What you can do about it

If you do get into debt there are three important things to remember:

• Don't bury your head in the sand. Hiding bills and bank statements won't make them go away
• However much your debts pile up, your rent or mortgage payments should always be top priority. If you don't keep up with your rent or mortgage, you could end up homeless
• Help is at hand. The agencies listed below are experts in helping people deal with debt

Where you can get help

If you're worried about your debts, you can call:

• the National Debtline on 0808 808 4000 (Monday to Friday 9am to 9pm and Saturday 9.30am to 1pm)
• the Consumer Credit Counselling Service on 0800 138 1111 (Monday-Friday 8am-8pm)
• the National Insolvency Helpline on 0800 074 6918 (Monday to Friday 8am to 9pm and Saturday 9am to 1pm)

These agencies all provide free services and their websites provide useful information on what to do if you get into debt. Their specialist debt advisers can make a full financial assessment and help you work out a plan to clear your debts and cover your living expenses. You can also use our directory to find contact details of your local citizens advice bureau.

Some private companies' advertisements sound too good to be true... and they usually are! Companies that offer an immediate, easy solution or target customers aggressively should usually be avoided. Their services usually involve very high interest rates and/or putting your home at risk by securing your home against it. Most mortgage rescue schemes are also highly risky. Always get independent financial advice before agreeing to anything.