Where to turn if debt gets too much

If you get into problems with debt and it becomes too much for you to handle, there are two golden rules – don't panic and don't ignore the problem.

It may also help you to know that you're not alone. More people are having problems with debt these days, sometimes through no fault of their own. Redundancy, unemployment, late payments and rising costs are all contributing to debt problems.

However, it should help you to stay calm and to sleep at night to know that there are organisations out there who can help you sort your money problems out and get back on track.

Ones to watch out for

Unfortunately there are also organisations out there who will purport to be helpful but could potentially make your situation worse, so it pays to be careful. Be very wary of commercial debt management companies who advertise on the TV, radio and newspapers and beware of anyone who comes to the door or calls you on the phone – you have to wonder what's in it for them to go to so much effort.

Payday Advances for Short Term Money

If you've miscalculated your budget and need some fast cash, payday advances, sometimes called same day loans too, are worth considering.

Applying for payday advances couldn't be easier. You can apply for payday advances online and to qualify you must be employed and over 18. The maximum you can borrow is £1,000, whilst the minimum is £80. Charges are approximately £25 for every £100 borrowed. You'll often have the money in your account the same day (hence the term same day loans) and you'll need to repay it on your next pay day.

Many debt management companies will charge a fee for their service, although they'll try to bamboozle you into thinking what they offer is free when it isn't. In fact, the Office of Fair Trading (OFT) has warned over 100 debt management companies about issues such as misleading advertising, not being upfront about fees and providing poor or incorrect advice.

The good guys

Luckily, there are good guys out there when it comes to helping with debt problems. These companies are all free and completely impartial so you can be sure that your debt problems are not being compounded by paying for advice and that the advice you get is objective and fair.

Trustworthy organisations who can help you get your finances back on track for free include:

• Citizens Advice
• Money Advice Trust
• Consumer Credit Counselling Service (CCCS)

If you're having problems with debt, give these companies a ring without delay. Tell them about your situation and concerns and they will be able to explain where you stand, what your options are and how you can sort things out. They can also reassure you and stop you from blowing your money problems out of proportion.

Don't delay tackling your debt problems and don't be tempted to deal with dodgy debt management firms when you could be dealing with objective and free organisations who are concerned with your best interests, not their own profits

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