Repaying Debt

NI Direct

Once you've recognised that you're in debt, you can begin to plan how you'll repay it. The easiest way is to organise your debts and then prioritise which are the most important.

Setting out your debts

The first stage to getting out of debt is to work out exactly how much you owe and who you owe it to. You can do this by taking a thorough look at your monthly bank statements and making a list of all your outgoings over the course of a typical month.

Prioritising your debts

The debts that you need to tackle first are the ones that have the most serious consequences if you miss a payment. If you don't address these debts as a priority, you could lose your belongings.

These types of debt include:

  • rent payments - if you owe money to your landlord, you can be evicted from your home
  • car payments - if you're over 18 and you bought a car using a loan or 'hire purchase' agreement, the vehicle can be taken away if you do not meet your repayment schedule
  • Housing Executive tenant rent arrears
  • Rent arrears

Other debts are classed as non-priority. This means that although you cannot have things taken away from you, they can still be expensive due to interest payments and can give you a bad credit rating, which leads to problems applying for loans in the future. These include:

  • credit cards
  • bank charges and overdrafts
  • money you owe to friends and family

Starting repayments

Hopefully, your new budget will mean you can allocate some money every month to meet your debt demands. However, if you're still finding it difficult, talk to the companies you owe money to.

It's important to do this as some lenders are willing to accept smaller monthly payments once they are aware of your particular circumstances.

Negotiating with creditors can be daunting and can take up a lot of time, so you may find that contacting a specialist adviser can make things a lot easier for you. You should make sure that any advice you get is free, independent and covers the whole range of possible solutions to your problems.

As well as helping you overcome your debt problems, these organisations can advise you of your legal rights.

Useful resources

Advice NI is the leading provider of nationally accredited Advice and Guidance, Legal...
It can be difficult to manage all the different bills and payments in our lives. The...
No time for a phone call? You can now get in touch with MoneyHelper using Whatsapp. The...
Advice NI, in association with The Good Things Foundation, is offering digital skills...
Macmillan Grants are a one-off payment of £350 to help with the extra costs that living...
We are the leading provider of nationally accredited Advice and Guidance, Legal Advice...
Advice NI, a registered charity founded in 1995, exists to provide leadership and...
Mental Health & Money Advice is the first UK-wide online advice service designed to...
Use this calculator to see how much a loan will cost you or how quickly you can pay off...
If you’re struggling with debt, it can be hard to know where to turn. But with lots of free advice services available across the UK, you can find help in a way that’s best for you.
Our free Budget Planner puts you in control of your household spending and analyses your...
Use this calculator to see how much a credit card will cost you or how quickly you can...

Helplines & Web Chats

Advice NI - Freephone advice helpline