Written by Tom Maplethorpe on 31 December 2014

LR new year finances

Now the dust’s settled on your Christmas spending, it’s most likely that like many other people you want to start the New Year in a positive frame of mind. We take 30% more calls in January than we do in November, as people look to make a fresh start with their finances. What better time to start managing your debt than right now?

We calculate that if an average-income family borrowed £685 over Christmas it would take between six months and a year for them to repay it (based on different budgets and circumstances.)

The start of the year is our busiest time and clients entering our debt management in January 2014 had an average debt of £16,789, requiring 8.4 years of repayment with interest and charges and 7.1 years without.

Follow our simple three-step guide for invaluable assistance on how to set up an informal arrangement with the people you owe. Our simple guide will help you review your income, prepare your financial statement and show you how to make offers of repayment to your creditors.

Reviewing your income

By examining in closer detail what money you have coming in you are more likely to be able to do one or more of the following; maximise, boost or save to increase your income. You might also want to set up a new bank account that isn’t already linked to any creditors, giving you full control of your outgoings.

Preparing your financial statement

Start by identifying your priority debts (those that can have serious repercussions if you don’t pay) and those that are non-priority, unsecured debts such as credit cards and store cards. By detailing all your creditors you will be able to work out exactly what you owe, giving you a target to work towards. Don’t worry if you are unsure exactly how much you owe each company. They will readily provide an up-to-date balance if you phone or write to them with a request for information.

Write to your creditors

Send your creditors a letter outlining your situation using the financial statement you have prepared and make them an offer of repayment. Advising them to freeze any planned future interest charges is a positive step if you are unable to fund an increase.

Follow this link to useful tools such as letter templates and calculation aids that we have produced to help you through the process www.payplan.com/advice/managing-your-debt/.

Once you’ve completed the steps, you’re managing your debt. Keep your creditors regularly updated and don’t be pressured into meeting their requests for increased payments if they cannot be met. Respond to any letters for higher repayments by sharing your financial statement again and explain why you cannot meet the additional demands. This should lead to compromise on your creditors part as you are demonstrating a measured approach to managing your debt.  

Don’t forget, for further advice, you can always call our helpline on 0800 280 2816

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This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

2 thoughts on “TAKING CONTROL OF YOUR DEBT IN 2015”


    July 7, 2015 at 2:56 pm

    i’m full deaf and 75 will be this September so i really like relocate to Spain very much i full out it i do not said hei loved so i need living at abroad look like freedom from uk sorry i do not said hates uk it because i need keep warm weather this why i need and plenty walking about any where what i needs so i haveon lotsmy c problem with financially well s i have owe to 9 + bit more but i’m not sure yet i will be owe £11,000=00 to 9 bit more company and i feel lose confidence well because i can’t saving well just like my late father was been past he was throw away over £20,000-00 but hope i won’t same his way again i hope so try keep away from good thing what i needs okay so hope keep touch soon about my future will be more comfortable life. again my pray for this thanks

    Reply Report comment

    • Rich Wells

      July 8, 2015 at 7:50 am

      Hello Reggie,
      I would advise you contact our helpline on 0800 280 2816 or 0207 760 8980 via a mobile. A trained adviser will be able to give you tailored advice.
      Hope this helps

      Reply Report comment

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