Medical debt can be more emotionally stressful than other types of debt because it almost never accrues by choice.

DEBT COUNSELLING

Debt counselling could be the answer to your personal financial problems. Maybe you’ve lost your job through ill health or been made redundant – the bills keep mounting up and you’ve no money to pay them.

  • The longer you leave the problem, the worse it is likely to get
  • Unopened bills don’t disappear

STEPS TO TAKE

  • Cut down on any overspending
  • Prioritise your debts
  • Get specialist help
  • Don’t ignore your creditors – try to negotiate terms with them
  • Work out what you can afford to repay

LOANS

  • Consolidation loans may help – but they are expensive
  • Your bank may also help you

DEBTS TO PAY FIRST

  • Mortgages – to avoid repossession
  • Council tax – failure to pay can lead to a court summons and prison

MORTGAGE ARREARS

  • Even if you are in arrears it may be possible to get a remortgage
  • This may well be expensive – but better than losing your home

REPOSSESSION

  • If the lender sells your home for less than you owe them they have several years to start chasing you for the balance – between six and 12 years
  • It is possible to negotiate a reasonable repayment plan