If you are in debt and finding it difficult to manage, you won’t be
alone. Many people are in debt for a number of reasons. The important thing to remember is that you
must not ignore these debts as they won’t go away. The longer you leave them, the worse they will get
as interest is likely to continue to accrue on the outstanding debt. Here is some advice on what
you can do if you are worried about debt.
if you have problems with paying Council Tax call 01784 446490
or e-mail: ctax@spelthorne.gov.uk
don’t panic, but don’t ignore the problem, it won’t go away
get in touch with the people you owe money to and explain the situation –
they are more likely to be helpful if you are in touch
keep a record of conversations with creditors and the names and phone numbers
of people you speak to
be realistic about how much you can repay – better to pay a small sum and
keep to it than a larger sum and not be able to
don’t over or under estimate your living expenses
calculate how much money you have coming in (your income)
check that you are receiving all the benefits to which you are entitled
avoid borrowing more money, particularly from loan sharks. It may seem attractive
but will just mean building up more debt
if you need independent advice speak to the Citizen’s Advice Bureau - they
can contact the organisations you owe money to. They can also check that you are receiving all the benefits
to which you are entitled
don’t ignore court papers – courts will take into consideration any information
given to them
split your debts into two groups – priority and non- priority and pay the
priority debts first
Dealing with debt
leaflet(Pdf 350kb)Priority debts These are debts which are particularly important to pay either because
they affect your home or because you may be taken to court for non-payment. These should be paid first:-
mortgage
rent
These are a priority
– you could lose your home if you don’t keep up with the payments. If you lose your home because you
have paid for other things, the Council may not have a duty to help re-house you.
Council Tax
TV licence
gas and electricity
court fines
maintenance payments
hire purchase agreements for essential items
Income Tax, National Insurance or VAT
Non-priority
debtsThese should only be paid once your priority debts have been paid but
you should still advise the lender/company concerned that you are having problems. Non-priority debts
include:-
overdrafts, loans, hire purchase agreements
credit cards
catalogue debts
student loans
parking penalties
money borrowed from family and friends
Work
out your budget – how much is coming into the house and how much is going out – work out how much you
can afford to pay back and plan any future spending.If you just don’t have enough to manage, see if you can increase your
income by working extra hours or renting out a room. You could also sell any unwanted possessions.At some point you may be advised to:
arrange a debt management plan with a debt management company
arrange an administration order or enter into an individual voluntary arrangement
with your creditors
Any of these may be a good idea
for you but it would be as well to get independent advice first.
Info: The Citizens Advice Bureau can give you more detailed advice to help you manage your debt. They can also advise on related issues such as employment and benefits. For an appointment call 01932-765041. *If you do make an appointment, it is helpful to take along as much information as you can about your debts - in particular the name and address of the company you owe money to, the account or reference number, the amount you owe and a copy of the original loan agreement you signed.
