If you're having problems paying your debts, there are many steps that you can take in order to rectify the situation. This all depends on very specific personal circumstances, such as the amount of debts, whether they are secured or unsecured and who is owed the money.

The first step is always to contact the creditor to let them know that you are having problems. Many lenders are bound by banking codes or regulations of the Financial Services Authority, which require them to be helpful, polite and sympathetic. Be polite in response, but stay firm, they will take as much as they think they can get from you. Tell them why you are having problems (don't expect them to actually care) and tell them that you can't make payments, and ask what they suggest. They will ask if you can make some form of payment, you could agree, but keep the amount reasonably low, maintain it is as much as you can afford to pay.

If you can no longer afford to pay your debts at all, because you have lost your job or are too sick to continue to work, ask what they advise. In most cases, they could ask for a token payment, as little as a pound. If you can prove that you are seriously ill and unlikely to ever work again, some lenders might even expunge your debt entirely. On the other hand, some lenders are very aggressive about repayments and will begin debt recovery action. Sometimes, only bankruptcy is the solution. However, your assets, including your house will be at risk if you choose to consider this option. Speak to an experienced financial advisor for further options and details.