If you are having difficulties making your monthly loan payments then contact your lender(s) immediately. The sooner you contact them the sooner you will be able to get the situation under control and the more sympathetic they will be. Once contacted, your lender may permit you to make underpayments until your financial position improves again.

There are also free organisations that are able to offer advice and guidance if you are having debt problems, such as the Citizens' Advice Bureau. (click here to find the phone number for your local Citizens' Advice Bureau). Give them a call and get hold of a copy of their booklet on dealing with debt, and where possible ask to speak to someone in person.

Similar help is also available from the Consumer Credit Counselling Service, which provides an entirely free service through its free phone number, 0800 138 1111. The CCCS can send self-help packs, arrange counselling sessions over the phone, or face-to-face in certain areas, and negotiate with creditors on your behalf.

One of these organisations should be able to help you devise a strategy on the best way to move forward.

They will also ask you the right questions to make sure you are collecting any benefits you are entitled to and will help you compose letters to your creditors. And, if you find yourself really up the creek, some will even go with you to any court hearings you may be facing.

Whatever approach you take to tackle your debt problem, the most important and most effective thing you can do is to take action straight away. The longer you wait before taking control, the worse the problem will become.