Compensation and Debt

If you are in debt, you are not alone. Most people suffer from debt or cash flow problems at some point in their lives – it is nothing to be ashamed of and there are plenty of things you can do to try and make life easier.

In debt following an injury

For some people, debts accumulate following an illness, accident or injury. Any serious injury will have an impact on a person’s finances - whether it’s down to lost earnings, recovery costs or simply an unavoidable change in lifestyle.

If you’ve gone into debt following an accident which wasn’t your fault, you should consider making an accident claim to recover lost earnings and help put you back on your feet.

If you are in debt and want free advice and information on making a no win no fee claim, call the National Accident Helpline or claim online today.

Debt help

There are some simple steps anyone can take if you have gone into debt. These will help you get to grips with your situation and start to move in the right direction.

1) Stay open to communication: It can be tempting to bury your head in the sand and ignore letters or calls from your creditors (the people you owe money to) – don’t. Contact them to explain your issues and see if you can work out a compromise or new payment plan. Most reputable organisations will be willing to help you if you remain open to communication.

2) Decide which are your ‘priority debts’: Make a list of all your creditors and decide which your priority debts are. A priority debt is one which will have serious consequences if left unpaid. For example, not paying the gas or electricity bill could lead to being cut off and taken to court, and leaving the rent or mortgage unpaid could leave you homeless. Address these areas first.

3) Be wary of taking on further loans to pay off your existing debts: Some loans have extremely high interest rates, meaning that you could end up paying back far more than you already owe. Also, some loans are secured against your property so be aware that you could end up losing your home if you take out one of these loans and fail to meet the repayments.

4) Check if you are missing out: Find out if there are any tax credits or benefits you could be entitled to according to your income and circumstances.

5) Create a budget: Make a list of what you are spending and see if there are any areas you could cut down on, or any service providers you might be able to switch to for cheaper bills.

6) Get specialist advice: If you feel your debts are getting out of control, you should seek professional advice on debt management, for example from community legal advice (http://www.communitylegaladvice.org.uk/). An advice agency like this one can give you free advice to help you to create a manageable budget for yourself and look to increase your income if at all possible.