Step 3 Choose your debt solution 3 Be very careful when dealing with debts to your bank or building society. Some could react by taking all the money in your account to clear an overdraft, loan or credit card debt you owe them. This is called the ‘right of set-off’. If your bank tries to take money from your account in this way, contact us for advice. Before negotiating a repayment arrangement with your bank, open a safe bank account with a bank or building society that you do not owe any money to. See Open a safe bank account if you owe any money to your bank in the Three things to do first section on page 4. Voluntary charges on your home If you have a large overdraft or loan, you may be asked to agree to a voluntary legal charge on your home before the bank agrees to accept reduced payments. This means that the debt would be secured on your home. You could lose your home if you don’t keep up the payments. Sometimes banks ask for an ‘all monies charge’. This means that any future borrowing or overdraft you have with the bank is also secured on your home. If a creditor asks you to agree to a voluntary legal charge, or your partner asks you to sign an agreement to a legal charge on your home, get legal advice first. Contact us, so we can help you find the right legal help for your circumstances. Non-priority debts with extra rules Some non-priority debts have extra rules, or can be more difficult to deal with. These include: • catalogue debts, see page 96; • payday loans, see page 96; • personal debts to family and friends, see page 96; • water rates arrears, see page 97; • student loans, see page 97; • mortgage shortfalls, see page 97; and • business debts, see page 98. Page 95