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National Debt Helpline
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Let’s face it, most of us are facing hard times and it is unsurprising that many of us feel overwhelmed, and unable to cope with the level of debt we are facing. But you really don’t have to go through this alone. There are several organisations in the UK that will work with you to achieve an affordable debt management solution. National Debt Helpline is a UK charity providing free debt advice to UK residents.

National Debtline

National Debtline is part of the Money Advice Trust. Established in the UK in 1987, as a registered charity, the Money Advice Trust offers a free UK debt advice service for residents of England, Wales and Scotland. The free helpline service is both confidential and independent. More importantly, the advice given is tailored to meet your own personal and financial circumstances.

Should you decide that you do not wish to discuss your personal situation with a National Debtline adviser, then their website probably provides one of the best free sources of information and template letters currently available on the internet. This invaluable advice can help you deal with your money worries independently.

Historically, you had to ring the helpline to access the free advice. As UK debt soared, this did cause a few problems with individuals, desperate for advice, unable to get through on the phone or alternatively, cut off after holding on for a considerable period of time. This problem has been addressed in several ways. Firstly, staff numbers have been increased to deal with the additional volume of calls. It is now also possible to email or write to the helpline for advice. With the increase in internet access and usage, there is also an interactive advice tool available online at Money Steps.

More often than not though, when someone decides to tackle such a major issue, they will generally want and seek immediate advice.

What Help Does National Debtline Offer?

National Debtline offers free expert advice on a wide range of consumer debts such as credit cards, store cards, loans and catalogue payments. They also provide advice on debts such as rent arrears and congestion charges. Their advisers are not there to judge you, but to help you resolve your financial situation.

National Debtline can also provide assistance with Debt Management Plans (DMP), Individual Voluntary Arrangements (IVA) as well as the relatively new Debt Relief Orders (DRO). Earlier this year the Money Trust Advice reported that the National Debtline service received over 20,000 calls in 2012 for help with payday loans. This represents a 94% increase on the previous year and demonstrates the increasing problem that consumers are experiencing with the rapidly expanding market of Payday loans.

How Does National Debt Helpline Work?

Normally, the first thing you would do is to prepare an income and expenditure report. An adviser will take you through this or, alternatively, you can download a pack from the site and work through it yourself. This is a crucial first step as this will determine which debt management solution is most appropriate for you.

One important factor to consider is what assets you hold. If you have significant equity in the family home, for example, then you may wish to avoid options such as bankruptcy, which may entail a compulsory sale. The best way to achieve the right solution for you is to be totally honest about your situation and what you hope to avoid, as well as achieve.

Free UK Debt Advice Resources

National Debtline Downloads – Free information packs, fact sheets and personal budget planner.
My Money Steps – Free interactive, online advice.

Most Importantly…

The most important thing is not to worry! If you’ve arrived at this site then you’ve no doubt acknowledged that you have a problem. The good news, is that you are not alone. There are plenty of people out there who are more than willing to help you resolve your problems. As well as professionals, check out some of the consumer forums for moral support.

The bad news is that when you start to negotiate with your creditors, you will inevitably find that you are no longer able to use your credit cards, which is especially difficult if that’s how you have been covering your essential monthly outgoings. Furthermore, you may find defaults and arrears registered on your credit file which will make borrowing far more difficult if not virtually impossible. This is not something that you should worry unduly about, but it may become a burden if and when you wish to move property and obtain a new mortgage.