Most people have money worries at some point in their lives. However, if you think that you are getting into financial difficulties and that your debts are becoming a problem then you should take action sooner rather than later.  If you have missed payments on a loan, credit card or your rent, or are finding it very difficult to make these payments, then its time to act.

Seek advice early to avoid things getting worse (see below for details of who you can contact). Ignoring the problem will not make it go away and could mean that you end up owing more money.  Something can always be done.

Here are a few basic tips and points to consider about debt. For more information, see our 'Dealing with Debt' information sheet; follow the links at the end of the page; or contact the Student Advisers:

• Some types of debts are worse than others. The student loan has very low interest and is paid back after your studies and should not be seen as a problem debt.  If you need to borrow additional money then an interest free overdraft is the best option.
• Talk to your creditors.  If you are having difficulties then contact your bank or lender as it might be possible to work something out.   Act early to avoid interest or charges building up.
• Never ignore letters from your creditors.  Open them and respond, even if this is to explain why you cannot afford repayments.
• Deal with priority debts first.  These include your rent, council tax and gas and electricity as the consequences of not paying these could be very serious.
• See if you can renegotiate your non-priority debts. These are credit debts. Seek advice before attempting to do this.
• Work out a budget.  If you haven’t done this already then this is a crucial step towards getting back on track.  Check the budgeting page for more information.
• Try and increase your income. This includes making sure that you're getting all the money that you should be getting in the form of student loans, grants etc or social security benefits. See Maximising Your Income for more information.
•  Decrease your expenditure. The possibilities are endless here, but you may have to make sacrifices.

More detailed information about how to deal with your debts is available at the National Debtline website.  This includes information on how to make offers of payment to creditors.  The Consumer Credit Counselling Service are also very good.

If you have difficulties during your course the Student Advice Service can give advice about debt problems, and help you budget. Your local Citizen's Advice Bureau can also help.