Assistance with debt

Where does my money go?

If you feel that you are losing control of your finances you should begin by listing your income and all of the money that you spend.

This link will take you to the Citizen’s Advice Website, and shows you the sheets that you can fill in with the details of your income and all of the money that you are committed to spending.

http://www.adviceguide.org.uk/d_budget_sheet.pdf

Listing your debts can be frightening when you see the total. By making regular payments your debts are less likely to spiral out of control.

However, if you find that you can’t meet the payments you need to do something immediately – this problem does not go away.

So what are the signs that I have a problem?

I am borrowing money with no idea of how I will pay it back
I am using a loan or credit card to pay my bills
I am only paying the minimum payment on my credit card every month
I am regularly using the emergency credit on my gas and electricity meters
I am thinking of taking out another loan to pay my existing debts
I am paying my rent with a credit card
I am using a credit card to get cash
I can’t sleep because I am worrying about money

What can I do about my debts?

1 Work out your weekly budget http://www.adviceguide.org.uk/d_budget_sheet.pdf
2 Contact your creditors straight away, tell them the situation and try to negotiate a lower monthly payment over a longer period
3 Prioritise your debts

Which debts should I deal with first?

Money advice agencies are there to help but make sure that you use one which is free and impartial. They can tell you which debts are a priority and will have serious consequences if you do not make the payments.

Priority debts

Rent

If you fall behind with your rent payments and don’t contact us to negotiate a payment plan, Seven Locks will take you to Court. The Judge can then give us an order to evict you from your home. As soon as you realise that you have a problem, contact your Housing Manager in order to reach an agreement. In normal circumstances if you contact us early, agree a plan to pay the debt, and stick to this plan we will work with you to avoid you facing Court action.

Contact us on 01858 414500

Income tax

Not paying tax can lead to you being made bankrupt or going to prison.

Utility bills

Gas, and electricity companies can disconnect their services to your home if you don't pay your bills.

You may see other debts as a priority, for example if you need your car to get to work and losing the car would mean losing your job, then this would also be a priority debt for you.

Other priority debts

If you don’t make the required payments to these, a court could order bailiffs to come into your home and take your goods away:

Council Tax
Court fines
Maintenance and child support payments

Your goods would be sold to pay what's owed. If, after this, you still owe money, there's a possibility that you could be sent to prison.

If you contact all of these organisations early enough they are far more likely to negotiate with you.

Non priority debts

You may not lose your home or go to prison for not paying 'non-priority' debts, but you can still be taken to court and ordered to pay what you owe. The cost of taking you to Court may also be added to the debt. If you still don't pay after the Court has ordered you to, the Court can order the use of bailiffs to seize your property.

Examples of non-priority debts include:

credit card or store card arrears
catalogue arrears
bank overdrafts and loans
benefit overpayments
money borrowed from friends or family
non-essential goods bought on hire purchase (HP)

Where can I get help and advice about debt?

Many organisations offer help and advice but some will charge you a fee upfront, others keep a percentage of the money they distribute to your creditors.

The following organisations will give you free and independent advice:

National debtline

This charity has a helpline for people in England, Scotland and Wales, which offers free, confidential and independent advice on how to deal with debt problems. National helpline 0808 808 4000 9.00 am to 9.00 pm Monday to Friday, 9.30am to 1.00 pm on Saturday www.nationaldebtline.co.uk

Credit action

Telephone 0207 436 9937

www.creditaction.org.uk

It provides information and guidance for people looking to manage their money better or to deal with debt or money worries. This is a very helpful website with budgetting sheets to complete.

Citizens Advice Bureau (CAB)

The Citizens Advice service can help you resolve your legal, money and other problems by providing free information and advice.
South Leicestershire CAB works around the district ring 0844 848 9009 for the adviceline or 0844 248 0040 for the debtline and you will be put through to the nearest office

www.citizensadvice.org.uk/cabdir.ihtml

CAB Lutterworth Fountain Court One Stop Shop, Wycliffe House, Gilmorton Road, LUTTERWORTH, Leicestershire, LE17 4DY

CAB Market Harborough Rear of 42 High Street, MARKET HARBOROUGH, Leicestershire, LE16 7AF

CAB Kibworth Kibworth Grammar School Hall, School Road, KIBWORTH BEAUCHAMP, Leicestershire, LE8 0LB

CAB Broughton Astley Broughton Astley Library, BROUGHTON ASTLEY, Leicestershire, LE9 6RD

Consumer Credit Counselling Service (CCCS)

The CCCS is a charity funded by the credit industry and provides counselling on debt problems - including personal budgeting and advice on the sensible use of credit.

FREEPHONE helpline 0800 138 1111