Self Help
SELF HELP
Whilst you may have some debt problems, you still may be some time away from having to consider an IVA or Bankruptcy .
If you are struggling with the level of your monthly repayments it may be appropriate to consider, if applicable, either a re-mortgage or consolidation loan.
It sounds very simple, but there are two main ways to help yourself.
- Increase income; and/or
- Reduce expenditure.
The Citizens Advice Bureau provides a number of self help guidance articles and fact sheets - http://www.adviceguide.org.uk/index/life/debt.htm .
INCREASE INCOME
Increasing income can be difficult, so you need to ensure that you are obtaining all relief and benefits. This is in addition to reviewing whether you have any surplus or non-essential assets that you may not require, or are luxuries. People will often buy what you may not need on online auction sites.
If you have employment where you are able to undertake overtime, look at whether this will help in stabilising your finances until you can put in place longer term fixes. However, be aware that any increase in your earnings may impact on any benefits you are receiving.
Tax
If you have employment where you are able to undertake overtime, look at whether this will help in stabilising your finances until you can put in place longer term fixes. However, be aware that any increase in your earnings may impact on any benefits you are receiving.
Tax
Ensure that you have the correct tax code, and are getting relief on work related expenses, if appropriate. If you have children, have you claimed the Children's Tax Credit? Check with your local H M Revenue and Customs Office for more information.
Benefits
Benefits
Ensure that you are receiving all benefits you may be entitled to. The majority are means tested so will vary subject to your earnings. Check with the local Department for Work & Pensions.
REDUCE EXPENDITURE
Look at the amount you are spending each month (try our budget planner for help).
Examine your spending habits. Are you an impulse buyer which greatly increases your shopping bill? Make a list of what is required and rigidly stick to it. Are you spending excessively in any areas? Can this spending be cut? Will direct debits help you budget better? Some organisations may give a discount by paying with this method. Include within your budget an amount to cover one off bills and try to save this! E.g. for when the boiler breaks down, or your car needs repairs. Shop around for the lowest prices or offers on:§ Your credit card or store cards. Review the APR you currently pay. It is likely that there are a number of providers offering 0% or low interest rates for limited time periods on balance transfers.
§ Your gas and electric tariffs. The recent surge in utility prices may mean that your current provider is not as competitive as when you signed up. Be careful of any redemption penalty if you have signed up to a term contract (or are thinking or signing up to one).
§ Your mobile and household phone tariff including broadband. As above, the opening of the telecoms market has led to greater competition. Review your tariffs regularly and compare to the market. Again be careful of any redemption penalty if you have signed up to a term contract (or are thinking or signing up to one).
§ Your household and car insurance. Sometimes splitting your home and contents insurance can lead to savings.
Always check your bank statements and credit cards to ensure that the person spending on them is you! Identity theft is becoming more common.