When there is not enough.
WHAT TO DO FIRST
Establish the actual position.
WHAT THAT MEANS
Total owed, to whom, and when Total income Essential costs
WHY EXACTLY
Avoidance makes it worse, and the position is usually clearer than feared.
WHAT TO PRIORITISE
Housing Food Anything that would cause loss of employment Anything with severe consequences
WHY IN THAT ORDER
Losing housing or work makes recovery far harder.
WHAT TO DO ABOUT DEBTS
Contact lenders before missing payments.
WHY
Arrangements are possible before default.
WHAT TO PROPOSE
What you can actually pay.
WHY REALISTIC
An arrangement you cannot meet fails and it damages credibility.
WHAT TO GET IN WRITING
Any arrangement agreed.
WHAT TO REDUCE
Discretionary spending, immediately Recurring commitments that can be cancelled
WHAT TO CONSIDER
Additional income, temporarily.
WHAT TO AVOID
Borrowing to cover borrowing High-cost short-term lending Ignoring communications Concealing the situation from those affected
WHY HIGH-COST LENDING
It provides relief for days and creates a worse problem.
WHAT TO ESTABLISH
Whether anyone can help: employer, family, cooperative.
WHAT TO BE CAUTIOUS OF
Anyone offering to resolve debts for a fee Advance-fee arrangements
WHAT TO RECOGNISE
That financial difficulty is common and it is usually recoverable.
WHAT TO DO ABOUT THE STRESS
Take it seriously, and talk to someone.
WHY
Financial difficulty affects health and judgement, and isolation makes both worse.
