Debt advice
If you only do one thing this month know how much money you have coming in and how much money has to go out!
Debt – the danger signs
• Do you avoid opening your bills?
• Do you have no savings and live on an overdraft?
• Do you regularly use your credit card to get cash or pay for your shopping?
• Do you not know how much you owe?
• Do you only pay the minimum payment on your credit cards?
• Are you borrowing money to pay off other debts?
If you do any of these, you could well be on the road to a debt problem, so get advice as soon as you can before it gets worse. For where you can contact local Citizens Advice Bureau or Credit Union, get employment advice, information on welfare benefits and other related information please click here.
Top Tips on how to deal with debt
1. Don't panic! And don't ignore the problem, it won't go away.
2. Don't take out more credit - you'll only get yourself in worse trouble.
3. Don’t just stop paying with no explanation. Tell your creditors you are having problems.
4. Don't pay off the person who is shouting the loudest, but pay the most important ones like mortgage or rent; council tax; and gas and electricity. Otherwise you will be in danger of losing your home, having your gas and electricity cut off; or ending up in court and possibly prison.
5. Work out how much you can realistically afford. It’s easy to be panicked into offering more.
6. Think twice about taking out a loan to pay off all your debts. You may end up paying back a lot more than you borrowed and at very high interests rates; you may not be able to afford the repayments; and the loan may be secured against your home, which you could then lose.
7. Don’t ignore court papers.
8. Look carefully at your spending and see if there is anything you are able to cut down on but don’t be over ambitious or you will not stick to it.
9. Check your income with the Citizens Advice Bureau (CAB) and see if there is anything you are entitled to that you are not getting, such as tax credits.
10. Get free advice from your CAB or other advice agency. They will help you work out repayments and negotiate with your creditors, and also help you keep out of debt in the future.
11. Avoid those companies who advertise in the media that say they can wipe out your debts.
12. If you do use a fee paying company shop around, compare fees and get everything in writing before signing up and make sure you read the small print.
For self-help information you can download for free see http://www.ned-cab.org.uk/debtselfhelp/index.asp.
back to the top
Making the most of your income Top Tips
1. Have a good look at your spending and see if you can make cutbacks or change your habits.
2. Shop around for the best deals on everything! Things like fuel, phone, savings and loans. Don’t be hasty and keep checking they are the best.
3. Check that your tax code is correct. Ask your tax office or CAB for advice if you are unsure. Keep all your pay and tax information from your employer and your tax office.
4. Check whether you are entitled to tax credits. Even higher income earners can claim these credits, particularly if you have children. It can be difficult to calculate whether you are entitled to some tax credits. Use the helplines provided by the Inland Revenue to get help and advice or contact your local CAB.
5. If you receive a self assessment tax form, make sure you get it back by 30 September following the end of the tax year. The Revenue will then calculate your tax for you and if you owe less than £2,000 you will be able to pay it through PAYE rather than having to pay a lump sum. If you don’t send it back by the deadline of 31 January, you will automatically be fined £100.
6. If you become unemployed and are not claiming social security benefits then ask your tax office for a rebate of the tax you have paid during the tax year.
7. If you are claiming benefits or a pension, ask your CAB to check you are getting everything you are entitled to; for example, if you are retired on a low income, you may well be entitled to pension credits.
8. Avoid using fee-charging cash machines, if you can.
9. Use energy efficiently – use energy saving light bulbs and don’t leave lights on unnecessarily, keep doors closed and put on extra clothes before turning up the thermostat, and insulate your home, if possible. Most utility companies offer ‘budget accounts’, which calculate your likely yearly bill to give a monthly figure. This offers a useful way to even out your spending and avoid high winter fuel bills.
10. Ask your CAB about any grants that might be available. For example, if you are having difficulty meeting the cost of a school uniform.
For related local advice agencies click here
