The short answer
Contact the company before the payment is missed, not after. Energy and water suppliers have hardship schemes, and free debt advice is available that is better than anything advertised.
- Ring before you miss the payment. Companies have far more flexibility with somebody who contacted them first.
- Ask specifically about hardship funds, payment plans and social tariffs. Energy and water suppliers have all three and they are not advertised prominently.
- Prioritise correctly: rent or mortgage, council tax, energy and court fines come before credit cards and catalogues, because the consequences are more serious.
- Get free advice from StepChange, Citizens Advice or National Debtline.
- Check benefit entitlement with an online calculator. A large amount goes unclaimed every year.
What will ruin it
Never pay a company that charges a fee to arrange a debt solution, and be very careful with anything advertised as debt consolidation. Everything they offer is available free.
Why it works
Creditors are far more willing to arrange affordable payments than to go through enforcement, which is slow and expensive for them. The leverage is much better before the account has defaulted.
Tipking is general household information, not professional advice. Test anything on a hidden patch first. Full disclaimer.
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