You may be getting letters or phone calls demanding payment from companies you owe money to ('creditors'), or you may have a debt that has been referred to a debt-collection agency. Perhaps you’ve had your car or household items repossessed.

Dealing with creditors can feel overwhelming. It can be tempting to avoid the calls and letters, and pretend the problem will go away. It won’t. So take some time to get help, and get the situation under control.

What most creditors want is to know that you’re serious about paying them. And most are realistic. If you can’t pay them right now, but you show you’re willing to pay them over time, they may be prepared to allow you to pay an amount towards your debt each week or month until the debt is paid off.

If you’re dealing with many different debts or collection agencies, you may need help working out a plan which allows you to pay off some of your debt each month to each of your creditors.

• An independent budget adviser may be able to help you work out a repayment plan and help you negotiate with the people you owe money to, to put the plan into action.
• You can find information on your legal position as a debtor at Consumer Affairs or Community Law

• When you’re desperate to pay bills, you may be tempted to take out a high-interest loan from a non-bank lender. This may simply replace one financial stress with another. Talk to ANZ or a budget advisor before you sign anything.
• You may be offered ‘budget advisory services’ that cost a fee. Be aware that budget advice is available free from members of Family Budgeting Services.