Step 1 Know what you’ve really got 1 Know what you owe It may seem obvious, but before you list your debts, make sure you know what you are liable for and how much you owe. It can make a big difference to how you deal with your debts and how long it takes to pay them back. Read through the following checklist. Do you owe the money? Only pay towards debts that you are personally liable for. Paying money to other people’s debts usually makes your situation more difficult to deal with. If you are unsure who is liable for a credit card, bank account or loan, check whether you are named on the agreement. If you are currently paying towards someone else’s debt and are worried about how stopping payments would affect them, contact us for advice. Have you checked your statements? Check that the amount you are being asked to pay is correct. Make sure that all payments you have made have been included in your statement. Need a copy of your agreement or a statement? If you need a copy, contact us for advice. You may have the right to ask for one. Have you taken out any debt with another person? If you take out an agreement with another person, usually you are both responsible for the full debt, not just part of it. This is called ‘joint and several liability’. For example, if you take out a bank loan with a friend, the bank can ask just you, or just your friend, to pay the whole debt. Or, they can ask you both to pay towards the debt. This doesn’t mean that the debt is paid twice, just that you owe the full amount until the debt is paid. Are you a guarantor? Some creditors ask for a guarantor before agreeing to lend money or provide a service. If the person who borrowed the money or used the service doesn’t pay, the creditor will ask the guarantor to pay. If you are a guarantor for someone else, contact us for advice. Guarantors for your debts If someone else agreed to be a guarantor for any of your debts, they will need separate advice. Page 23