All about debt
It is almost unheard of for students to leave university without any kind of debt. In addition to student loans you may find you have accrued rent arrears, have high credit card balances and/or large overdrafts.
‘Priority debts’ are the most important debts and you need to sort out payments on these first. By not paying a priority debt you could risk losing your home or even go to prison.
Priority debts usually include things like:
- mortgage or rent arrears
- secured loans
- Council Tax arrears
- utility bills
- tax arrears
- court fines
- TV Licence
- Maintenance / child support arrears
Non-priority debts include things like:
- credit cards
- store cards
- bank loans
- overdrafts
- money lenders
- mail order catalogue repayments
- money you've borrowed from family or friends
You can't ignore these, but you don't need to deal with them as a first priority.
Seek help
Being in debt can be very stressful and not knowing how to deal with it can make it worse. Thankfully most debts can be managed if you know how. What is important is that you seek advice and deal with the problem before the situation gets worse. You should inform creditors that you are in financial difficulties and enlist help to sort out your financial situation,
To receive a self-help pack or to make an appointment to speak with a debt adviser, please contact SMART on +44 (0)20 8223 6200 or email smart@uel.ac.uk
Newham Council offer a self help debt pack on their website: Self Help Debt Pack http://www.newham.gov.uk/Debts-howtosortthemout.htm
Advice can also be obtained from:
- National Debtline : 0808 808 4000
- Student Helpline : 0800 328 1813
- Credit Action : 0800 591 084 www.moneymadeclear.fsa.gov.uk
