MONEY PROBLEMS
- Juggling your bills each month because you can't pay them all?
- Behind with your rent?
- Always broke at the end of the week / month?
- Behind on credit repayments?
- Always borrowing money from friends and family?
- Regularly going overdrawn on your bank account?
- Leaving letters unopened or throwing them straight in the bin?
Hiding from debt won’t make it go away. It may be easier than you think to get debts under control, especially with professional help from Castlegate or CAB. You may end up with a bad credit reference but you’ll feel loads better. CAB also offer money management training.
National Debtline run a free advice line to help you sort out debt, and an excellent website from which you can download their 'self-help pack', factsheets, sample letters, a budget sheet, 'what if's...', all with clear advice to follow and make debt manageable.
- Maximise your income: If you are struggling to make ends meet, make sure you are not missing out on any benefits or tax credits that you may be entitled to - see p.100 for who can help.
- Make a budget plan: call in at Castlegate for a budget plan or download one from the National Debtline website. Work out your income and outgoings. Talk it through with someone and see if there are any savings you could make - for example taking sand-wiches to work, buying a bike or reducing your mobile phone costs.
- Prioritise your debts: List everyone you owe money to. Your priority debts are the ones with the most serious consequences, not the ones hassling the most. First should be rent or mortgage arrears, then secured loans, gas, electricity and water bills, Council Tax and unpaid fines or maintenance payments. Tackle other debts after these, such as credit card or bank debts.
- Contact the people you owe money to and explain the situation: Send a copy of your personal budget plan to all your creditors with an offer of repayment that you can afford. Don’t worry if it is small. Most creditors would prefer this than to chase you for missing payments. And if you can’t afford anything now, tell them so, and that you’ll contact them again if your situation changes. Ask them to freeze any interest. Sample letters are available from National Debtline, but you can get help doing all this from Castlegate or CAB.
- Don’t borrow other money to pay off your debts. This often works out more expensive, no matter how tempting. Avoid debt consolidation companies – they are in business for your money.
- Don’t ignore court summons - fill in the papers and attend the hearings. The courts can often arrange a repayment schedule that’s manageable, and will stop people pestering you. Unpaid debt (other than Council Tax arrears) is only a civil offence, not a criminal one. You won’t be arrested for it!
- Answer creditors’ letters and calls; keep records. They are allowed to remind you of missed repayments but not to harass you.
Gamblers Anonymous or Gamcare - can help if your money problems are related to gambling in any way - they give confidential information, advice and support over the phone (and Gamcare offers support online).