STEP ONE – DON’T PANIC!
Facing up to your debts can be a very frightening experience, much of which is simply the fear of the unknown; hopefully this guide will alleviate many concerns that there might be. There is plenty of help on hand, not only from this very forum but others like it, and also through a large network of debt advice charities and institutions – all of whom are very knowledgeable and helpful. Watch out though, as there are hundreds of commercial firms out there to make money from your situation, some even masquerade as charities or free advice agencies. If you are looking to seek assistance these are the organisations that I recommend:
National Debtline: 0808 808 4000 // www.nationaldebtline.co.uk
Consumer Credit Counselling Service : 0800 138 1111 // www.cccs.co.uk
PayPlan: 0800 280 2816 // www.payplan.com
Citizen’s Advice Bureau: www.citizensadvice.org.uk
Northern Ireland only >> Advice4debtNI: 0800 917 4607// www.advice4debtni.com
There are plenty of folks who are dealing with their debts right here on the Consumer Action Group, take time to have a read of their stories and what they have done to work towards a debt-free life. We have a fantastic community here with some very knowledgeable members – get involved! As far as debts are concerned there is not a situation which cannot be sorted, some may take a little longer than others but ultimately there is always a workable solution. It is vital not to bury your head in the sand, debts seldom disappear, and the sooner you make the first step the sooner things will start to more forward.
MAXIMISING YOUR INCOME
Lots of people are in debt because they don’t receive all the money they are entitled to. It’s really important to ensure that you are maximising your income by claiming all you are entitled to. Here are a few pointers:
Tax: Check with your local tax office to ensure you have the right tax code, a surprising number of people are not!
National Minimum Wage: As of 1st October 2011 this is £6.08 for an adult aged 21 or over, up to then it is £4.98.
There is a range of different benefits which you might have an entitlement to, this will depend on your particular circumstances. Some benefits are means-tested which means that your entitlement would depend upon household income. Some benefits are non-means-tested which means that you may have an entitlement regardless of income, these are usually sickness-related benefits. You can find out more about benefits and possible entitlement by visiting one of the following sites:
www.entitledto.co.uk
www.direct.gov.uk
www.jobcentreplus.gov.uk
www.turn2us.org.uk
www.dwp.gov.uk
www.thepensionservice.gov.uk
www.hmrc.gov.uk/taxcredits/index.htm
Other Income: If you have grown-up children or other relatives living in your house make sure they are paying enough towards the household expenses. If you have a spare bedroom you can rent it out for a maximum of £4250 a year without having to declare it for tax purposes (it may affect benefit entitlement). Ask you tax office about the rent-a-room scheme for more information. You may also be able to request assistance from The Social Fund, this could be for essential household items or help in an emergency. If you’re looking to improve your home you could see if your local council give grants for improvements. There is also a range of grants available for insulation and draft-proofing, central heating. These are dependant on your age and if you’re in receipt of any benefits. For more information please call the Energy Trust on 0800 512 012.
If you’re over 60, you will usually be entitled to a lump sum every year called the winter fuel payment, give the helpline a call on 0845 915 1515.
Finally, it might be worth selling anything you do not need. You will be surprised how much you could make from getting rid of tat on E-bay or via a Car Boot Sale.
These ten steps give a brief introduction to the options you have available to manage your debts. There will be parts of the guide which will only be relevant to those living in England & Wales, some parts will cover Scotland and some for all areas. At this time Northern Ireland will not be covered – you can get advice for that area via the following website:
www.advice4debtni.com
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