Anyone can fall into debt. A sudden unexpected change of circumstances could mean that although you used to be able to afford all of your essential payments and bills, you no longer have the money to manage. Studies show that one in four people with a mental health problem also has debts and that one in two adults with debts also have a mental health problem.

Living with debt can be stressful, however there can be a number of ways to deal with it. This section suggests the first steps you should take if you find yourself with unaffordable debt. It explains how you could negotiate affordable payments to creditors, what can happen if you do not pay, and provides details of organizations that can help.
•Seek help. There are organizations that provide free and confidential help and advice. You don’t have to deal with the debts by yourself.
•Ensure any income that is being paid into a bank account is protected by opening an account that is not linked to your debts.
•Complete an income and expenditure sheet in order to make sure any offers you make are realistic and sustainable.
Separate your debts into priority and non-priority – deal with priority debts first.
•Non-payment of priority debts may result in the loss of something, for example your home or fuel supply.
•Non-payment of non-priority debt may result in the debt getting passed to a debt collection agency or the creditor applying for a County Court Judgment (CCJ).
•If you are unable to repay your debts at the rate agreed when you entered into the agreement, it will be noted on your credit reference file. This can make it more difficult to obtain credit in the future.