The worst thing to do if you find yourself in debt is to ignore it and carry on as before.  You need to contact the organisations that you owe money to, in order to find a mutually acceptable way to pay them.  This may mean agreeing a schedule of small payments over a period of time.  If you have several debts and your situation is complex, help in finding the best solution is available from:

In business you should try to avoid debts by closely monitoring your cash flow.  Falling into debt can have serious consequences, and will affect your credit rating.  If you think you will have problems meeting tax bills, get in contact with HM Revenue & Customs  to work out how to avoid additional fines for late payment.

Once you have defaulted on any debt, this information is recorded on your personal financial records. This factor may make it difficult to access credit and the financial services necessary for running a business in the future.  You can lose your home or business premises by failing to make mortgage or rent payments.  You could be made bankrupt or imprisoned for non-payment of tax or VAT.  It is therefore essential to prioritise your debts, in terms of the consequences of failure to pay.

Fuel supplies can be cut off, hire purchase goods can be repossessed and bailiffs may take possession of other goods if fines or court orders are imposed.  This can make it impossible to keep your business going.  Keep a close eye on your cashflow and speak to one of the agencies listed below if you start to get into financial difficulties.

Companies (including potential suppliers) use credit checking to find out whether to trade with you and to decide how much credit to offer.  You can check your credit rating at the most common credit checking agencies by contacting them and paying a small fee:

This is a dedicated service, backed by the SBS and all major banks.  The service is free and they give over the 'phone help on 0800 197 6026.  They have a good website: www.bdl.org.uk.

Your local CAB provides someone to talk to in complete confidence about money problems.  The national organisation's website www.nacab.org.uk has explanations of the different types of credit available and there is online help from www.adviceguide.org.uk

Drop-in weekday mornings at Bristol Debt Advice Centre, 2nd Floor, 48-54 West Street, St Philips, Bristol BS2 0BL. Tel: 0117 954 3990, www.bdac.org.uk/.  The South Bristol Advice Service is open weekdays at Leinster House, Leinster Avenue, Knowle, Bristol, BS4 1NL, www.southbristoladvice.org.uk/  Tel 0117 985 1122.

Free information for people living in England and Wales, including an information pack for dealing with debt.  The helpline is open Mon to Thu from 10am to 4pm and from 10am to 7pm on Tue and Wed.  Call 0808 808 4000.