Reduced Working Hours

I'm 25, in a good job, and my finances have never been a big problem for me. But when the credit crunch caused difficulties for my company, things started to drift

Firstly, my working hours were cut by a fifth.

That didn’t seem like a disaster at first, but a lot of my outgoings were unavoidable and existing debts grew quite quickly, especially because of the interest that was building up.

I finally decided serious action was needed when I realised that I owed £19,000. I talked through the options with a counsellor and worked out what I could realistically afford to pay each month. He suggested a debt management plan, which is an informal agreement with my creditors.

After he negotiated things for me, interest on half of my debts was frozen. It’s made a huge difference. I will be able to pay everything back within four years, even at my reduced income. It has been a relief having someone to talk to who can help keep me on track and get the money to my creditors every month.