Most agreements allow creditors to add charges and interest. If you feel that the charges are unfair or too high, you should first make a complaint to the creditor.

Creditors can add charges, but the Office of Fair Trading guidelines state these should be “based on actual and necessary costs” and should not be too high compared with the debt itself.

If you do not get a satisfactory response, you could contact the Financial Ombudsman Service who can investigate the matter further.

It can be useful to know what is on your credit file, especially if you have been refused credit or you think you have old debts you may have forgotten.

You can get copies of your records with Experian, Equifax and Call Credit for £2 each. Details of how to apply are on their websites.

All three credit reference agencies offer online subscription services, usually with a free trial period.

To check the information held about you by National Hunter Ltd and CIFAS, you will need to pay £10 each. Again, details of how to apply are on their websites.

You may have difficulties opening a bank account if you do not have a passport or a driving licence. Different banks will accept different forms of identification. You will need to check with the bank to find out which other forms of identification they will accept. You may have to try several different banks until you find one who will accept the identification you have. If you have problems opening a bank account please visit the FSA website or contact the Financial Ombudsman.

You may be entitled to some Government benefits to help increase your income. You could speak to your local benefits office or visit Entitled to, a website with a benefits calculator. If you are struggling with debts and would like advice on benefits please call our helpline. One of our specialist advisors will be able to check what you are entitled to.

Late or missed payments will show on your credit file for 6 years, as will repossession proceedings. This may make it more difficult to re-mortgage or obtain credit.