Don’t be put off by the size of this step This step has been designed to cover most people’s situations. Because of this, it includes information on lots of different types of debts and debt solutions. The good news is that you don’t need to read it all. You only need to look at the sections that deal with your situation. Take 10 minutes to read the following instructions. They explain what sections are a ‘must read’ for your situation. This will save you lots of time. 1. Look at the chart on the opposite page and circle the situation that applies to you. 2. Read each section of the guide listed underneath your situation. Do this in the order they are shown. For example, if you have priority debts only, start by reading Deal with your priority debts first on page 48, then go to Summary budget for creditors on page 49, and so on. Read all of the sections listed for your situation, as they include the information you need to deal with your particular debts. 3. Sometimes other sections in this step may also be useful. Where possible, we will tell you if you need to look at another section for more information. It will also help if you get to know what’s in this step, so have a quick scan through Step 3. 4. Remember that you don’t need to do everything in one go. Decide what time you can spare and work through the sections that apply to you. Do this at your own pace and keep going. You can also contact us for advice if you need to. Terms used in this step Arrears We use ‘arrears’ to describe payments that you have missed on your debts and household bills. Arrears can also include interest and charges that have been added. Bailiff Bailiffs are also known as ‘enforcement agents’. In this guide we use the term bailiffs. Creditor Your creditors include organisations and people that you owe money to, such as banks, councils, debt collectors or family and friends. Equity Equity is the difference between how much your home is worth and the total amount owed on any mortgage and other lending that you have secured on it. If your home is worth more than your mortgage and secured lending, there will be equity. Page 46