Basic debt advice.pdfVIP

.uk Adviceguide Advice that makes a difference Basic debt advice Many people fall into debt at some point in their lives, often through no fault of their own. This fact sheet will help you to deal with your debts and remove the pressures of being in debt. The following steps will help you regain control of your finances. Contact your creditors Dont ignore the problem. It will only get worse. Contact the people you owe money to (your creditors) as soon as you realise you cannot keep up your payments and explain your problems. Be sure to keep copies of each letter you write. Increase your income You may be able to increase your income by:- ? claiming additional benefits and tax credits, including housing benefit, council tax benefit, working tax credit, child tax credit, pension credit, job seekers allowance if you are unemployed or income support if you are on a low income, and/or disability living allowance, attendance allowance, carer’s allowance or if you or your partner/children are sick or have a disability. You can obtain further advice from your local CAB.; ? you or your partner finding additional part time work, but check how this would affect any benefits you are receiving before doing so; ? taking a lodger, but check whether this would affect any benefits you are receiving. You may also need the permission of your mortgage lender and home contents insurer; ? checking your tax code and whether you are entitled to any tax allowances or tax reliefs that you are not claiming. Your local tax office will be able to advise you. Draw up your personal budget Work out a weekly or monthly budget so that you know where your money goes and how much you can afford to offer your creditors. Make a rough copy first, as you may need to alter the amounts. Try to ensure that you arent spending more than you have coming in, but make sure the amounts are realistic. You will find it very difficult to keep up with your payments if you ha