Having Money Problems
Are you experiencing financial difficulties? Do you want advice on how to manage your money better? Do you want to know how to maximise your income?
If the answer is yes to any of these questions then this booklet could help you!
A step-by-step guide to managing your money
Your worries can be reduced, with a bit of guidance and some useful contacts.
If you have money worries, it is important to deal with them as soon as possible. They will not go away and the longer you leave them the worse the situation will become.
This page is:
- to help you take control of your finances and manage your money more effectively
- to help you maximise your income and ensure you are getting all of the benefits you are entitled to
- to provide details of agencies working within Watford, who could help you with your finances.
Follow these steps and take control
The following steps will help you deal with your problem:
Step 1: A change in circumstances – tell the right people
It is not uncommon for a change in your circumstances to be the cause of your money problems.
Changes could include:
- the birth of a child
- a change in salary
- unemployment
- retirement
- health issues
- change in benefits.
Who you need to tell:
Watford Community Housing Trust
If you are a Trust tenant you should contact our Rent Team on 01923 209111.
Housing Benefits and Council Tax departments
You may be able to get help paying your rent and/or Council Tax. Contact the Council on 01923 278501. If you live in Three Rivers, telephone
01923 776611.
If you already get housing benefit and do not tell them of a change in your circumstances, you could be stopped and you may be asked to repay some benefit.
You may, in certain circumstances, qualify for a discretionary housing payment to help you. To find out more please contact the number above.
Your Creditors (the people you owe money to)
It’s a good idea to talk to the people you owe money to as they may be able to help. Keep them in the picture and they are more likely to be sympathetic.
Where you can get help and advice about the change in your circumstances:
- Citizens Advice Bureau (CAB) – for free and impartial advice on your finances contact the CAB on 01923 234949.
- Crisis Loans - you may be eligible to claim for a budgeting or crisis loan. Contact Jobcentre Plus on 01582 685200.
- Tenancy Support Service – support is available for vulnerable people at risk of losing their tenancy. If you are over 25, please contact SPH Housing on 01438 357187 or visit www.sph.org.uk. If you are under 25 you can contact Herts Young Homeless Group on 01923 245030.
Other Useful Contacts
Please refer to the contacts section for a more detailed list of possible contacts.
Step 2: Work out your personal budget
It is important to keep track of how much money you have coming in (income) and how much money you have going out (expenditure).
Complete Form A: Income and Expenditure
Important: You need to record your expenses as weekly OR monthly, don’t combine them.
- To convert weekly payments to monthly payments (weekly payment x 52 weeks divide by 12 months)
- To convert monthly payments to weekly payments (monthly payment x 12 months divided by 52 weeks)
Step 3: Identify your debts
Getting organised is an important process for you to go through and is the first step in gaining control over your finances.
Make a list of everyone you owe money to (your creditors), together with their telephone number, address, reference number and total amount.
Complete Form B: Summary of Total Debt
If you aren’t sure of how much you owe, you should contact the creditor before completing Form B.
Add together the total amount that you owe.
Step 4: Identify priority and non-priority debts
Priority debts are the ones you need to deal with first. As they have the most serious consequences, if they are ignored. An example is rent arrears, which may result in you losing your home.
Priority debts include:
| Debt | Possible action against you |
|---|---|
| Rent Arrears | Losing your home |
| Council Tax | Deduction from income or imprisonment |
| Gas/Electric | Supply cut off |
| Magistrates’ court fines | Deduction from income or imprisonment |
| Income tax | Seizing goods to the value you owe/bankruptcy |
Non-priority debts include:
| Debt | Possible action against you |
|---|---|
| Loans (includes door step lenders) | County court claim |
| Phone bill | Disconnection |
| Credit cards | County court claim |
So, from Form B (Summary of Total Debt you have already completed), you need to list which of your debts are priority debts and transfer this information to Form C: Priority Debts.
At the top of Form C, complete the Money for Creditors box. This is the money you have left every month/week once you have paid all of your expenses (this was calculated when you completed Form A: Income and Expenditure (take this fi gure from the bottom of Form A). Complete the Balance Owed box for each of your priority debts.
Priority Debts – negotiating repayments
You now need to contact your creditors to negotiate repayments. Don’t pay more than you can afford and, if possible, always leave some money spare to put towards other non-priority debts and emergencies. If you need advice on what minimum payments to make, please contact the Citizens Advice Bureau (see the contacts section of this booklet).
Contact your creditors by phone or letter and include a copy of your Income and Expenditure Form, Summary of Total Debts Form and Priority Debts Form (ie. Forms A,B and C), two example letters are provided for guidance.
- Letter 1 – an example of a letter you could send to a priority creditor
- Letter 2 – an example of a letter you could send to a non-priority creditor
Important! Once payment agreements are made with your creditors you MUST keep to them, or you will breach your agreement.
Repayment Options
If you can’t afford to pay straight away, there may be some options available, such as consolidation loans. This is where you replace all your debts with a single loan, usually with a lower monthly payment but a longer repayment period.
However, think carefully about borrowing more money to pay off existing debts, as it could make things worse. Remember, the longer you take out a loan for, the more interest you will have to pay back overall.
Other options include Administration Orders; Individual Voluntary Arrangements, Debt Relief Orders, Bankruptcy but get specialist advice on all these.
In exceptional circumstances (such as if you a have long-term health problem or are very elderly), you may try asking your creditors to write off your debt.
Step 5: Help and Advice
You can get independent advice on your finances by contacting either the Citizens Advice Bureau on 01923 234949 the National Debt Line on 0808 800 4000 or the Consumer Credit Counselling Service on 0800 138 1111.
Step 6: Affordable Credit
Credit Union
Watford Community Housing Trust works in partnership with Watford Credit Union to help residents save and obtain affordable credit. The telephone number is 01923 236401.
Credit Union can offer a cheaper option to borrowing from doorstep lenders. Savings and loans are protected by free insurance (subject to conditions) and the Credit Union is regulated by the Financial Services Authority (the same organisation also regulates banks and building societies).
Social Fund/Community Care Grant
You may be eligible to claim for a:
- Budgeting Loan – no interest charges.
- Crisis Loan – no interest charges.
- Community Care Grant – does not have to be paid back.
To find out if you are eligible for any of the above, please contact the Jobcentre Plus for more information on 0845 608 8649.
Other Helpful Contacts
As well as the phone numbers provided, there is a lot of information on the Web, so you don’t even have to talk to anyone if you would prefer not to. There are also self-help packs and examples of letters to write to creditors.
Useful websites:
Useful Contact Numbers
- Age Concern 0800 00 99 66
- Benefit Enquiry Line 0800 882 200
- Carers Allowance Unit 01253 856123
- Child Benefit Helpline 0845 3021444
- Child Tax Credit Helpline 01923 234949
- Citizens Advice Bureau
- Watford 01923 226400
- Three Rivers 01923 776611
- Council Tax 01923 236401
- Credit Union 01923 236401
- Customer Credit Counselling Service 0800 138 1111
- Energy Savings Trust 0800 512 012
- Housing Benefits
- Watford 01923 278501
- Three Rivers 01923 776611
- HM Revenue & Customs TBC
- Jobcentre Plus 01582 685200
- National Debt Line 0808 800 4000
- Pension Service 0845 6060265
- SPH (tenancy support service) 01438 357187
- Watford Community Housing Trust Rents Team
01923 209111 - Social Fund/Community Care Grant 01582 685200
Step 7: Maximising your income
It is important that you make sure you are receiving all the benefits you are entitled to. Many people don’t realise what they can claim. For information call the Rents Team on 01923 209111.
Summary
If you have been through all the steps, use this checklist below to help make sure you have completed all the necessary sections.
- Step 1: Contacted all relevant organisations to inform them of a change in your circumstances
- Step 2: Completed Form A – Income and Expenditure
- Step 3: Completed Form B – Summary of Total Debts
- Step 4: Completed Form C – Priority Debts
- Contacted Creditors (either by phone or letter, example letters provided)
- Considered booking appointments to help you further e.g. Citizens Advice Bureau
