Readjusting to a single-income and getting out of debt: Alice Beer’s Bill Busters

My husband lost his job last year and, as a result, we've ended up in a lot of debt. It's got to the point where I'm not sure what to do. Any advice?

I am sorry about your situation - but frankly you have conquered the hardest hurdle, which is to admit that you are in trouble and you need help. Now you have taken the first step, you need to move quickly to stop the situation getting any worse.

The scariest thing is to write down absolutely every single debt on one piece of paper…. be honest with each other and hide nothing. Then divide the list up into urgent and less urgent. On the urgent list you must put anything that is accumulating interest. The next list is to work out your budget. What, if anything, is left over at the end of the month after essentials.

Then you pick up the phone and you make contact with every single creditor. Work out how much you can afford to pay them each month/week - but make it realistic so that you stick to it. Most lenders will consider freezing your interested charges. They will be reassured by you asking that you are approaching your debt in a sensible way, and therefore are more likely to get the money back!

There are many good sources of debt advice. I like My Money Steps from the National Debtline (www.mymoneysteps.org) because it is online and completely confidential and anonymous!

If you really hit rock bottom, please do not reach out to many of the people trying to lend you instant money at high interest rates. There are other options. You can get a debt relief order (DRO) if you have less than £50 a month spare income left after essentials. This will put all your debts on hold for 12 months and companies cannot take any action against you. This will give you time to get your feet back on the ground.

I am sure you will be hesitant about claiming any kind of benefit or support but you have to cover yourself here and now and take the help. Hopefully your husband will be back in work very soon.

Our home needs a bit of a lift but redecorating is pricey! Do you have any tips on how to do it on a budget?

I want to come round to your house right now and help! I love a redecoration project! Don’t worry about the budget - I think homes where each piece has been carefully sourced and placed end up with a much greater sense of style than those where money has been no object.

Do start with a good clear out. A cluttered home will never feel lovely and it is amazing how sometimes just getting rid of junk and moving furniture around makes it look like a new room. When you are ready for action, do your homework for the look you are aiming for.

There are many fantastic websites and magazines for design inspiration and being creative with colour costs no more than painting the walls white. If you are clever with the style, it will look like you have spent a fortune.

Next I am going to run through the websites that I love to use… they all encourage the reuse and recycling of goods. There is no stigma anymore about nabbing free things that people no longer want.

www.gumtree.com - This is a great place for free or very cheap big pieces of furniture: dining room tables, beds, sofas, which people have replaced and want to get rid of. All you need to do is inspect the items by photos on the ad or popping round before you commit, double check the measurements (especially if you have to get it up a staircase!) then find a way of transporting it!

Shops I would recommend for unbelievable prices include www.argos.co.uk where you can get a duvet cover and pillowcases for less than £8 and www.ikea.com where coffee tables and bedside tables can have a distinctive style and still cost less than £20.

Pop into a B&Q store or their online site www.diy.com where you can get amazing deals on decorating and home improvement, everything from cushions right through to kitchens and bathrooms. They don’t believe in yo yo pricing when it comes to kitchens and bathrooms where prices are inflated throughout the year to make way for seemingly great value slash price sales.

Now set your budget and have fun!

I've recently gone through a break-up which has come as a big shock financially. Do you have any advice for readjusting to a single-income?

I sympathise that you are having to deal with a financial trauma on top of the emotional one! However, be reassured that this area of your life might be tricky but at least you can take complete control of it. Take everything slowly and carefully, don’t let it overwhelm you. This could be your first solo, empowering step.

There are obvious practical first steps to take such as:

Now you are in a position to download one of the many money planners online to help you budget. The Citizens Advice Bureau is a good source of information, help and advice. Also look at the Ministry of Justice website for links to the Family Court.

You could be eligible for up to 6 hours of free counselling to help sort out separation issues. There are many specific help pages online for people in your position. www.ni.direct.gov.uk outlines the financial help available to people bringing up a child as a lone parent. Finally I know many people who have found much comfort, company and advice from the Gingerbread charity www.gingerbread.org.uk . Good Luck!

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