Top 10 tips for what to do when you are in debt from Thisismoney
 
 

1. Don't panic! And don't ignore the problem, it won't go away.
    
    
2. Don't take out more credit or put more on existing credit, like your credit cards - you'll only get yourself in worse trouble.
    
    
3. Talk to your creditors and let them know you are having problems.
    
    
4. Don't pay off the person who is shouting the loudest, but pay the most important ones like mortgage or rent, council tax, and gas and electricity. Otherwise you will be in danger of losing your home, having your gas and electricity cut off or ending up in court and possibly prison.
    
    
5. Don't ignore court papers.
    
    
6. Check your income and see if there is anything you are entitled to that you are not getting. For example, new tax credits can be quite generous.
    
    
7. Look carefully at your spending and see if there is anything you are able to cut down on but don't be over ambitious or you will not stick to it.
    
    
8. Work out how much you can realistically afford to pay.
    
    
9. Think twice about taking out a loan to pay off all your debts - you may end up paying back a lot more than you borrowed and at very high interest rates; you may not be able to afford the repayments; and the loan may be secured against your home which you could then lose.
    
    
10. Don't pay for advice. The CAB gives free, independent and confidential advice. They will help you work out repayments and negotiate with your creditors, and also help you keep out of debt in the future.