I am in debt, what should I do?

Don’t panic as you do have options, LUU Advice can help you negotiate with the people you owe money to. 

Is your debt a priority or a non-priority debt? 

  • Priority debts are urgent debts such as rent, gas, electricity or council tax. If your debt is to the University, this could become a priority debt as they can stop you progressing with your course. 
  • Non-priority debts are credit or store card debts, or overdrafts. These can be paid off when the priority debts have been paid. 

What happens if you don’t pay your debt back? 

  • Your debt can increase due to interest, and it can also affect your credit rating. This means you might have problems getting a credit card or mortgage in the future. 
  • The people you owe money to could take court action, but if they do this it’s still possible to negotiate. 
  • Your gas or electricity could get cut off if you haven’t paid these bills. 
  • If you owe the University money, you may not be allowed to carry on studying. 

Some tips to avoid further debt? Stop using the source of the debt, so the credit card or store card. Make sure you’re getting all the income you can, pop into LUU Advice in the Union to see if you could be getting additional funding. 

Knowing where to start solving debt can be the hardest bit. Here’s some good places to get you started: 

If you’re overwhelmed with multiple debts, come into LUU Advice in the Union for a chat.