When debt becomes a problem - where to get free help

Debt stops being a budgeting problem and becomes a debt problem at a recognisable point. Knowing that point - and that free, regulated help exists - matters more than any technique in this track.

The warning signs

• Borrowing to make minimum payments on other borrowing.
• Balances rising each month despite paying something.
• Missing priority payments - rent, mortgage, council tax, energy, court fines.
• Using credit for essentials such as food and fuel.
• Avoiding letters, calls and your own banking app.

Any two of these together mean it is time to get advice, not to try harder alone.

Priority debts come first

Not all debts are equal. Priority debts are the ones whose consequences are eviction, repossession, disconnection, enforcement or, in some places, prosecution: housing costs, tax, utilities, court fines, child maintenance. Credit cards and personal loans are non-priority - the consequences are serious but slower. Advisers always deal with priority debts first, and so should you.

Free help, always

Reputable debt advice is free and provided by non-profit and regulated organisations. Never pay a fee for basic advice, and be sceptical of any firm that cold-calls you promising to write off debt. A free adviser will review your income and outgoings, help you negotiate with creditors, and explain the formal debt solutions available where you live - which vary considerably by country.

Talk to creditors early

Most lenders have hardship processes: payment holidays, reduced payments, frozen interest. They are far more willing to help before you default than after. In some countries you can request a breathing space that pauses interest and enforcement while you get advice.

This is education, not advice

mySal can explain how these options work and help you see your numbers clearly. It cannot recommend a debt solution for you. For that, speak to a free, regulated debt adviser in your country.