Or, if you have an extra room in your house then you could rent the room. You may also apply for a second job or work overtime on certain days to increase your income. If you still lack money or don’t have enough to pay the mortgage then ask debt advice from a Shelter who has dealt with repossession cases.

Talk to lenders and advisors about your situation and be really honest about it. Tell them how much you can really afford. Lenders need to know that you can pay them a certain amount regularly. Tell the lenders that you sought debt advice from expert advisors to show that you really want to make matters better. You can find advice and information at the Debt & Loan Info centre online.

You should note that the information provided here refers only to your unsecured creditors which are lenders such as credit card companies, your store cards, student loans, and other loans such as overdrafts or personal loans. Secured loans such as your mortgage, rent arrears or car hire purchase agreements should be your first priority and you should ensure that you deal with these first.

The first tip is what not to do: do not in any circumstances ignore letters or phone calls from your unsecured creditors. Contact them as soon as you can even if it is just to tell them that you are trying to work things out and will get back to them within a few days with suggestions about what you are going to do.

At the same time you can ask them to at least temporarily freeze the interest and late repayment charges that they are adding to your loan.

Also, request that they do not initiate any proceeding against you such as insolvency or Count Court actions and that they put a hold on any such proceedings they might have already initiated.

Be honest about your circumstances and how you see they might pan out over the coming months. For instance if you have lost your job, you can indicate how long it will be before you expect to get a new one.

Keep notes of everything that is said by both parties, and as soon as you have ended the call, write a letter to them that restates the conversation and everything that was agreed.

You need to work out how much you can afford to repay towards your loans and you should distribute what you can afford evenly amongst them pro-rata to how much you owe.

Set out your offer in a letter to each of your creditors and include evidence that this is a realistic offer by including a detailed budget of your income and outgoings and list your debts to other creditors.

The court makes the final decision on whether your home should be repossessed or not. It is important to prove that the lender’s demand is reasonable or you will lose your home. But before this happens, communicating to your lender and letting him know your financial situation will show your desire to pay them. If you cannot afford a solicitor, CAB, Shelter or the Scottish Legal Aid Board can offer you free debt advice. Their debt advice is crucial to your case.

Debt Advisors
Debt advisors in the UK are one of the greatest resources in helping you get debt free. These are trained professionals with lots of experience in specific cases just like yours. If you have and issue, don’t be afraid to go and visit a debt advisor.

Internet
The Internet is a great source of information on getting debt free in the UK. There is no better resource to help you find every piece of information you need. Now, you need to evaluate where you are getting your information from, but if you find a trustable site, there should be no issues with it.

Books
Believe it or not, some of the best information on getting debt free can be found in books. While some of the specifics may change, the general principles of getting debt free in the UK have always been the same. If you are in need of some information on getting debt free, don’t be afraid to look in some books!

With the help of the information provided by these outlets, you should have no problem getting debt free in a short period of time!

Lack of Quality Jobs
It is no secret that it is extremely difficult to find a well paying job in the UK. It was hard before, but with the current deteriorating economic climate today, it is even harder. When people decide to take on a mortgage or a loan, they are pretty sure that they will have a reliable job for a long period of time. But, when you lose a job, or when your wages don’t keep up with inflation, you fall behind and don’t make very much progress.

Lack of Knowledge
Some people in the UK are just unaware of what it takes to become debt free, and don’t know how to manage their money well. This is not a problem just in the UK, it is a problem all around the world. If people took more interest in financial planning and learned how to save and live on a budget, there wouldn’t be this widespread epidemic of unpaid debts.

There are many more possible reasons as to why people in the UK struggle to get debt free. But, if you put your mind to it, getting debt free in the UK is not as hard as you think. Do some research, formulate a plan, and get going today!