Debt help and advice - Tiscali

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- Check if you should consolidate your debt
- Pros and cons of loans
- witch to a cheaper credit card

Anyone from a stockbroker to street cleaner can get into debt and need help to get themselves out of their financial problems. But don't despair, help is at hand.

One source of free advice is the Consumer Credit Counselling Service (www.cccs.co.uk). Their counsellors will review your financial position and help you draw up a plan to pay off your debts.

This is done by prioritising the most important financial commitments such as rent, council tax and tax debts which, if ignored, can lead to loss of your home or bankruptcy.

Secured vs unsecured loans

Some debtors make the mistake of turning unsecured loans such as credit card bills into secured loans (which means that the loan is guaranteed against the value of your home) and could lead to repossession. You can contact the CCCS on 0800 138 1111 (8am to 8pm) or if you are in Scotland ring its debtline on 0800 138 3328.

Other sources of help for advice on debt management include www.justask.org.uk or www.creditaction.com - an educational charity that explains all aspects of money management.

Another is Community Legal Advice, which is the government's free legal aid service that provides telephone and web advice. Get in touch by calling: 0845 345 4345 or visiting: www.communitylegaladvice.org.uk.

Don't bury your head in the sand

If you ignore your debts, your creditors have various means of forcing you to pay up. If they know where you work, they may seek an "attachment of earnings order" which means that they will ask your employer to deduct the money owed from your salary. This is acutely embarassing and means that you have less control over your money.

Alternatively you might be the subject of a "garnishee order" which usually involves the creditor contacting your bank to have the money owed paid directly from your account. Alternatively, the creditor may take out a "charging order" on your property so that you could not sell it without paying your debt.