Contact Your Creditors
If you are having trouble repaying your debts, one of the first things you should do is to contact your creditors to see if you can come to an arrangement to pay off your debt at a level you can afford.
Although it can be difficult to take this step because of embarassment or nervousness, there really is no need to worry, and this simple action will help to avoid getting bad credit rating or worsening your existing record.
Creditors are human too!
Companies don't want the hassle or cost of issuing default proceedings, employing debt collectors, or going to court. In the vast majority of cases, your creditors will be only too happy to explore ways they can avoid this.
In many cases, you may be able to arrange to pay only the interest on your debt - this is useful if you are suffering from cash flow problems as your monthly payments will be much lower, but is not a good long term solution as your overall debt level is not reduced.
For such debts as gas or electricity bills, you will probably be able to arrange to pay a set amount every month, part of which goes towards reducing your debt, and the rest goes towards your ongoing bills.
There are many ways in which your creditors can help you to avoid official debt recovery proceedings, and once you come to an arrangement you'll not only feel a lot less stressed about your situation, you'll save money on collection charges, and your credit rating will thank you too.