Credit Crunch Clinic - Top 10 Tips
Are you unable to pay all your bills?
Are you struggling with debt?
If so you are not alone!
We’re all affected in one way or another by the latest economic down turn, but with the help of the following top ten tips we’ve put together, you could find ways to make life a little easier.
Select any of the top ten links below or simply scroll down through the page to see our tips. They can help you face any debt problems, maximise your household income and find help to get you back on track.
- Don't bury your head in the sand…tackle problems face on.
- Are you entitled to any financial help? Are you receiving all the benefits you are entitled to?
- View your current income & expenditure.
- Prioritise your expenditure.
- Finding it difficult to pay increased fuel bills?
- Struggling to pay your rent or mortgage?
- Sensible borrowing and saving.
- Help for those in real need.
- Seek free independent advice.
- Talk about it - tell friends and family.
1. Don't bury your head in the sand…tackle problems face on.
If you think you are in trouble, don't ignore it. Take positive action and deal with problems as soon as you can.
- Make contact with those you owe money to as soon as you can - where possible before you default on any payments
- Always respond to communications from creditors
- Follow guidance on court summonses and abide by court decisions - it could stop further costs or actions being taken against you.
Remember: Creditors and the courts will be more sympathetic if you explain your situation and tell them of your intention to pay what you can afford. Work with them to agree a repayment plan that you can maintain.
To help find information, view independent advice or write to creditors use the free computer and internet access available in our libraries.
If you owe money to us, call one of the numbers below to discuss your options.
- Rent: 0121 717 1515
- Council Tax 0121 704 8100
- Overpaid Housing Benefits: 0121 704 6325
- Payment of invoices for Council services: 0121 704 8173
2. Are you entitled to any financial help? Are you receiving all the benefits you are entitled to?
Many households struggling on low income are not receiving the financial benefits they are entitled to.
There are a large amount of unclaimed benefits each year in England. In Solihull alone there are almost 6000 underclaiming Council Tax Benefit and 2000 for Housing Benefit.
Depending on your age, disability, carer status, working/ non working, family circumstances. To check you are getting all you are entitled to for your circumstances visit www.direct.gov.uk/benefitadvisor. This will also tell you how to apply if you are not already receiving these benefits.
This facility can also show you "what if" calculations i.e. thinking of returning to work or increasing work hours.
If your household is on a low income, you may be entitled to claim assistance on your Rent or Council Tax bills. To find out more call us on 0121 704 8200.
3. View your current income & expenditure.
Do you know how much money you're spending each week or month?
Making a list of all your income and outgoings will help you to see where you money is going and if you can make any savings.
If you want to use a detailed template to help view your income and expenditure access our on-line budget calculator or print off our budgeting form. Read our guidance notes and frequently asked questions to help view your household budget, you may be surprised where your money is going!.
The completed calculator or form will give an indication to your households' financial situation, ability to pay priority expenditure and other monetary commitments.
Things to consider when viewing your income and expenditure:
- Try and be realistic and don't leave yourself £10 a week for food!
- Are there fluctuations in your income you need to take into consideration?
- Could paying by direct debit even out payments?
- Could changing suppliers for insurances, phones or services save you money?
- Is your income and expenditure fair? Are there others living in your household who could contribute more?
If you owe money for Council Tax and want to make a repayment arrangement call us before things get worse on 0121 704 8100 or print off our Council Tax Financial Statement form.
4. Prioritise your expenditure.
First address your priority expenditure that may threaten your home, energy supplies or health by ensuring you are able to pay your rent/ mortgage, council tax, utility bills, T.V. license and food shopping.
On viewing your households income & expenditure assess what is your essential expenditure and what items/ activities you could do without to alleviate pressure on yourself. For example, giving up smoking may save the average smoker up to £2,000 per year, and cutting back on TV channels/ facilities could save the user £600 per year.
To meet repayments on priority debts you may need to reduce an excessive food, entertainment or shopping budget and possibly negotiate lower re-payments of non priority debts.
If you are able to agree and maintain repayments for bills and debts, don't endanger them by overspending elsewhere. Make a budget for your personal activities and stick to them.
Why place yourself further in debt for another night out or an outfit you don't need?
The pressures of debt will eventually far outweigh the enjoyment of these things.
- Don't spend money on non essential items.
- Don't spend money you don't have.
- Don't take on further credit.
5. Finding it difficult to pay increased fuel bills?
- You may save money by switching energy suppliers. Some internet sites compare costs from suppliers taking into consideration the energy you use and method of payment.
- Some suppliers offer a ‘Social Tariff' with varying criteria i.e. sometimes aimed at pensioners or those on low income. Ask your supplier if you may be entitled to and benefit from this tariff.
- Ebico (telephone 0800 458 7689) is a not for profit energy supplier which offers a tariff which usually benefits those on repayment meters, people who don't use much energy and those who pay quarterly
- Free independent energy advice is available from the Central Midlands Energy Efficiency Advice Centre (telephone 0800 512012). Residents who own their own home, people with health problems or on an income-related benefit renting a privately owned house may be entitled to financial help in gaining loft/ cavity wall insulation.
- Help with the installation of central heating or boiler replacement may be available from the Warm Front scheme (telephone 0800 3162814).
- Solihull Community Housing (SCH) tenants are being offered ‘Home MOTs' to check every home has sufficient loft/ home insulation and provide energy saving light bulbs to help ensure the home is energy efficient. If you feel you may benefit call us on 0121 717 1515.
- Most households with residents who were 60 or over by 15 September 2008 are entitled to a winter fuel payment. For more information contact the Department for Work and Pensions on 08459 151515.
- To reduce petrol costs, shop locally, consider car sharing or walking short journeys.
6. Struggling to pay your rent or mortgage?
Contact your landlord or mortgage lender before it goes too far. SCH are keen to work with tenants in arrears, you can contact them on 0121 717 1515.
The Citizens Advice Solihull and other independent advice organisations have produced a helpful leaflet with advice to those in mortgage arrears. To benefit from this advice please read the NHAS Mortgage Advice leaflet.
Have you considered moving or downsizing? If you are spending more than the income you bring in, you may be better off moving to a more affordable house.
If you are renting try to negotiate with your landlord to reduce your rent to a manageable level - remind your landlord of the positive elements of your tenancy when re-negotiating i.e. length of tenancy, well looked after property, pay rent on time etc.
7. Sensible borrowing and saving.
As soon as you are able, budget an amount to save each month for future need.
Try to avoid taking on any further credit, but if you do take out credit or a loan, understand how much you will have to pay back. Will fluctuations in interest rates and penalties for late payments further increase the amount you owe?
As a non-profit making organisation the Credit Union is a safe place to save and access small amounts of affordable credit.
To use their services you will need to join the Credit Union. No credit checks will be made but rules do apply. You may need to have placed some savings or have been a member for a qualifying period prior to requesting a loan. For more information contact the Credit Union that covers the Solihull area on 0121 350 8883.
8. Help for those in real need.
There are schemes to help provide food, essential household appliances or grants for those in real need.
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Parcels of non-perishable food may be supplied from the Salvation Army tel 0121 507 8500 or Helping Hands which accept requests through Solihull Community Housing debt advice team on 0121 717 1515.
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Essential household goods such as cookers and fridges are available from SCH to those without or those struggling to pay instalments for these items. Grants may be available to help provide other items, for example a new bed. For more information contact SCH Debt Advice on 0121 717 1515.
9. Seek free independent advice.
Are you having trouble managing your debts or need help negotiating repayment of your debts with those you owe money to? If you are, get professional advice from an independent agency who will not charge for their services.
Useful Contacts:
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SCH Money Advice: 0121 717 1515
For Council Tenants or anyone in real need - Citizens Advice Solihull Borough: 08448 269 716
- Chemsley Advice and Resource Agency (CARA): 0121 770 3773
- National Debt Helpline: 0808 808 4000
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Age UK Solihull
Available to assist in money advice for those over 50 and are aware of specialist issues for the elderly, including care bills 0121 705 9128 -
Business Debt Line
Advice service for small businesses 0800 197 6026
10. Talk about it - tell friends and family.
Don't be ashamed and try to keep up pretences or you'll put yourself under extra pressure. Talk to your friends and family.
You may find others are in the same situation or worse off than yourself and will appreciate your suggestions:
- Make alternative suggestions for any activities you enjoy together such as less expensive nights out, or nights in!
- Set a realistic budget for Christmas or birthdays, maybe you could make your own gifts!
- Share computer access to search sites that could help reduce bills or offer money saving tips or vouchers.
- Share tips and advice that has helped or pass on this list!