If you are currently able to cover your debts and expenses with your income but worry that you may get into difficulties, see our Managing your money guide. You can also work out whether you’re likely to have problems with your borrowing by taking our confidential Debt test.

You may have the beginnings of a debt problem if you find yourself doing any of the following.

• Using credit cards to take out cash advances, or to pay bills or mortgage repayments.
• Being tempted to take out a consolidation loan to reduce monthly payments on your debts.
• Paying no more than the minimum payments due on your interest-charging credit cards.
• Borrowing money without planning how you’re going to pay it back.
• Regularly increasing your overdraft to pay for general living costs.

Don’t be embarrassed. If you are:

• unable to pay for basic necessities;
• unable to pay your rent, mortgage or utility bills, or contractual payments such as loans; or
• receiving letters from bailiffs, solicitors, or other debt-recovery agencies demanding money you owe – GET HELP.

It's important to deal with the problem as soon as possible. Start by working out the scale of the problem. You may find you can work something out, or if you can’t, you will be in a better position to know you need expert help. The longer you ignore your debts, the worse the situation will become.

Make a list of all your debts. Don't forget to include unpaid bills, loans from family and friends, and money you owe on credit cards.

Certain debts should be dealt with first, as ignoring them can have serious consequences. These include your mortgage (and any other loans secured against your home) or rent, council tax, gas and electricity payments, hire purchase for a vehicle, and maintenance to support a former partner or children.

If you’re having problems repaying your mortgage, talk to your lender to see how they can help.

This will help you work out how much you can afford to pay off each week or month to clear your debts. Your budget may also show you where you can save money.

Work out what money you’ve got coming in and check whether there are any benefits or financial support you may be able to claim.

If you need help preparing a budget plan, talk to a debt adviser.

If you’re struggling, it’s best to get in touch with those you owe money to (your creditors) as soon as possible. Try and agree a course of action.

Even if you have little or nothing to offer your creditors, you should still talk to them.

All electricity and gas suppliers follow a code of practice that means they won't cut off your supply if you agree a payment plan with them and then keep to it.

Let them know why you can’t pay your mortgage and tell them what you are doing. All mortgage lenders we regulate have to consider your circumstances, and will have procedures for dealing with cases like yours.

You may be able to replace all your debts with a single loan, usually with a lower monthly payment and a longer repayment period. Think carefully about borrowing more money to pay off existing debts as it could make things worse. When repaying debts using money from a consolidation loan, always make sure that you destroy any associated old cards, as it may be tempting to start reusing them again and build up further debt.

Remember, the longer you take out a loan for, the more interest you will have to pay back overall.

DMCs offer help with non-priority debts. For a fee, they negotiate on your behalf in order to reduce the payments you are making overall. You then make one payment to the DMC and they will distribute it to your creditors.

Many organisations, such as National Debtline, offer free debt management plans, so there is no need to use a commercial DMC.

As well as informal arrangements with your creditors, there are other repayment options, but they each have their own advantages and disadvantages, so make sure you get specialist debt advice before doing any of them. Options include:

• administration orders;
• Individual Voluntary Arrangements (IVAs);
• debt management plans;
• Debt Relief Orders (DROs); and
• bankruptcy.

In exceptional circumstances (such as if you a have long-term health problem or are very elderly) you may try asking your creditors to write off your debt.

If you owe someone money, they may try to collect the debt using a bailiff or debt collector.

Debt collectors can only talk to you about the debt and how to pay it back. They are not allowed to intimidate or harass you – you are protected by the law and industry guidelines.

If a bailiff has an order from the court they do have the right to take your goods and sell them to raise money to pay your creditors. You will usually need to give them permission to enter your home.

Never let a bailiff into your home without being shown a copy of the order they claim to be enforcing. Make sure you do this outside.

A number of organisations can help you understand your rights and obligations if these people contact or visit you – see Debt help.

If you owe someone money, they might take you to court to get it back.

If you accept (or the court decides) that you owe all the money claimed, a court order (known as a county court judgment or CCJ) will be made against you. If you've already worked out how much you can afford to pay your creditors, you can offer to make payments for the same amounts.

Always respond to a claim form within the time specified, otherwise you may find you have to pay off the whole amount straightaway instead of having the opportunity to repay by instalments.

Even if certain debts are not secured on your home, failing to keep to a new payment plan with your creditors could put your home at risk. This is because they may ask the courts for a charging order, allowing them to secure the debt on your home. If this happens, then they may be able to repossess your property.

There are several organisations that offer free debt advice, and you can talk to them face to face or by phone.

There is also a lot of information on the web, so you don’t even have to talk to anyone if you would prefer not to. There are also self-help packs and examples of letters to write to creditors.

It can be difficult to break habits that are causing you to get further into debt. If you feel you’re becoming addicted to gambling or are relying on shopping to make you feel better, there are organisations that can offer support.

Once your debt is under control, try to review your situation regularly to avoid it happening again. Read our Managing your money guide for some useful tips.