Face up to the situation

Assess whether your problems are likely to be short term or long term. Take steps to deal with them as quickly as possible.

Be realistic

With any loan you will be charged interest on what you owe. Each interest payment you fail to make will be added to the capital sum you owe.

If you ignore communications from your bank or building society you are likely to end up with legal costs added to your original loan amount as well.

Talk to your lender

Be frank about changed circumstances and try to reach an acceptable agreement on rescheduling the loan, or changing your commitments.

Negotiate

If you find you are too emotional to deal with the situation, bring in a debt counsellor to negotiate with the lender for you.

Threshold, the St Vincent de Paul and Citizens Advice Bureau have counsellors experienced in dealing with difficult situations.

Economise

Make any changes in lifestyle which would allow the repayments, or rescheduled repayments, to be met.

Sell

Be prepared to face selling the house and moving downmarket in order to protect any equity you have built up.

Be realistic

With any loan you will be charged interest on what you owe. Each interest payment you fail to make will be added to the capital sum you owe.

If you ignore communications from your bank or building society you are likely to end up with legal costs added to your original loan amount as well.