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Debt is part
of modern life. It's difficult to live
in our society without using debt and credit
sometimes - mortgages and credit card bills
are both examples of debts.
What if your income
suddenly changes (because of redundancy,
for example, or a relationship breakdown),
it's easy to get behind with payments.
Some of these are more
urgent than others – if you get seriously
behind with your rent or mortgage, you may
lose your home. If you don’t pay your
fuel bills, your supply could be cut off.
If you default on a credit card bill or an
unsecured loan, your debt will increase,
and you could eventually get taken to court.
To find out more about why debts grow, have
a look at our section on interest.
To reduce your debts,
you need to start planning and budgeting.
If you know exactly how much money you have
coming in, and what you need to spend, you
can identify how much will be left to pay
off debts.
Getting into the habit
of budgeting is well worth the effort - it
will help you pay off your current debts,
and mean you're less likely to get into problems
in the future.
Choose from
any of the following:
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