It is advisable to communicate with the creditors and lenders you are in debt to - you can do this by telephone or by letter. If you ignore the situation, it will only get worse. To help get you started, there are some sample letters for each type of debt you need to settle.
If you have prepared your financial statement, you will be able to see how much you are able to afford towards your debt each month. You could even ask your creditors to freeze the interest payments until your debt has recovered. If they feel that you are making an effort to repay your debts, creditor will usually be sympathetic to your situation.
Unfortunately sometimes creditors will reject your offer of additional payment and will request more. This is usually because the creditor does not agree with an area of your financial statement or the fact that they are not familiar with dealing with customers in financial difficulty, but some creditors will just try and be awkward.
If you can not afford to pay your creditors as much as they would like, do not make them priority over any other debts you may have. Continue to pay them as much as you can afford and contact your Citizens Advice Bureau as soon as possible.
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