In UK alone, there are more than 13 million people in debt. A recent survey noted that nearly one third of these debtors have concerns about the ability to pay their future monthly payments. What’s more, nearly half of the youngsters between the age of 16 and 25 years say that their greatest worry is not paying of their financial debts. True, all of these concerns are valid in the face of an impending recession but there are ways to reduce your burden by devising personal strategies. Hidden Tax Credit Don’t just assume that you are not eligible for any kind of tax break, while working. Your priority should be to look at your income and see if you qualify for a tax break. Talk to a financial councillor and you may be able to get the working tax credit or even a child tax credit. Now if you have already passed 60 years then a pension credit might already be in store for you. Set your Priorities Straight Set your priorities to make payments. You should know who should be the first in line to get your funds? Typically, rent and mortgage is the very first payment that you should make. Council rates and gas or electricity bills are next, whereas any court fines or income tax are also very important. While prioritising to tackle the recession, just think about the ramifications of not paying the debt. All of the preceding priorities can easily make you a defaulter, meaning no living space or even a prison term. Be Realistic Remember, there is an accountant lurking inside every one of us. Get a calculator and a paper to write down realistic spending. While calculating don’t try to cut corners because it will just harm you and your family. Be straightforward in your assumptions and you will likely be able to manage things in short term. If nothing works out then it may be time for a debt reduction offer. Debt Management during Recession Often known as the Pro Rata offer, Debt Management plans are available to all the citizens of England, Scotland, Wales and Northern Ireland. It involves contacting one of the debt reduction companies to make an offer to your creditors to arrange different terms for the Debt that you owe. Usually, these debt managers are very skilled in convincing the creditors to increase the length of the payments, reduce the interest rates or even relinquish the past claims. However, as a first step always seek advice from the Citizens Advice Bureau In order to qualify for a Debt Management offer, it is necessary that you owe at least £4000 to two or more creditors. The rules also dictate that you should be able to spare a minimum of £100 after incurring any rents and living costs. Any surplus amount that you are able to save is distributed among your creditors on a monthly basis. This monthly amount can be as low as £100 a month. Of course, these are just a few of your options. Look around and talk to your friends and well wishers. During these crisis days, any good advice is worth its weight in Gold... Reputable Companies that can help you manage your debts and deal with your creditors.