How to cope in the red

· Don't panic! And don't ignore the problem, it won't go away.

· Don't take out more credit - you'll only get yourself in worse trouble.

· Talk to your creditors and let them know you are having problems.

· Don't pay off the person who is shouting the loudest, but pay the most important ones like mortgage or rent; council tax; and gas and electricity. Otherwise you will be in danger of losing your home, having your gas and electricity cut off, or ending up in court and possibly prison.

· Think twice about taking out a loan to pay off all your debts. You may end up paying back a lot more than you borrowed and at very high interest rates. You may not be able to afford the repayments and the loan may be secured against your home, which you could then lose.

· Seek advice from your CAB. They will help you work out repayments and negotiate with your creditors, and also help you keep out of debt in the future.

Supplied by the National Association of Citizens Advice Bureaux.