MONEY AND DEBT PROBLEMS : ADVICE AND HELP
Debt is in the news – every day we hear that more and more people have debt problems. For many people it may become more and more difficult to get a good loan from a good lender. For others it may be that they have difficulty paying their rent, gas, electric and other bills on time and arrears mount up.
Most older people are very careful with money and dislike getting into debt. But sometimes things happen: an unexpectedly large bill, accidents, sudden loss of income. Maybe it’s concern for a relative who has the debt or money problem.
LOW INCOME? Taking up full entitlements to Pension Credit, Council Tax Benefit and other allowances can make a big difference to paying the bills and reducing money worries. These are available by right under the national insurance social contract: pay in when you work and pay taxes, draw out like a pension when you stop work or when you are in need. If your gas and electric bills are more than 10% of your income you can get special help. click here for special information
BENEFITS CHECK: If you think you may be entitled to Pension Credit and other benefits, advice and assistance is available from Age Concern Southampton (Tel 02380 368636), the Department of Work and Pensions (Tel 0800 055 6688) or if you are a council tenant from your Housing Office.
For people on low incomes, borrowing from the ‘better’ lenders may be difficult. Poorer people are more likely to get into debt with a range of lenders who may seem to make borrowing easy but charge higher interest and can be very hard on those who cannot keep up repayments.
CHECK YOUR LENDER: There are many legal regulated lenders who offer ‘special help’ to those who have a poor credit history. The newspapers are full of adverts for ‘easy credit’ but interest rates may be high and if the debts are not repaid on time there is a risk of losing your property and even your home. The phrase “your property may be at risk if you fail to meet repayments” applies not just to repossession of homes. Lenders may pass on problem debts to ‘debt recovery agencies’ who may be quick to send in the bailiffs for TV’s, furniture etc
As usual – “if it sounds too good to be true, it is too good to be true” – so check the small print. You can contact Trading Standards if you think a lender or a debt recovery agency is being unreasonable. Trading Standards operate a code of conduct for lenders and agencies. Contact: Southampton City Council, Trading Standards, the Civic Centre, Tel 02380 834 455 or 0845 404 0506 and www.tradingstandards.gov.uk/southampton
ADVICE ON DEBT PROBLEMS: The best advice is to get help as soon as possible if you are struggling to pay debts. The better lenders do not want you to become a problem and if you ask early you may be able to renegotiate your payments.
For free, confidential and independent advice the best sources are the National Debtline: Tel Free 0808 808 4000 and www.nationaldebtline.co.uk
and the Citizens Advice Bureau. Tel 02380 221406/ 333868 and www.citizensadvice.org.uk
BEWARE LOAN SHARKS: These are illegal criminal moneylenders who prey on the most vulnerable, those who cannot get loans from the legal regulated lenders. Their interest rates are very high, and can make a small debt quickly double or treble. Then the sharks use intimidation and threats to make borrowers pay up, often by taking everything they have.
Southampton City Council now has a team working with the police to actively prosecute loan sharks. Because people are so afraid of the loan sharks there is a confidential helpline for people to report their activities – 02380 571 122
FAIR FINANCE FOR LOCAL PEOPLE.
Community Finance Organisations aim to help those who have difficulties getting fair credit or may be paying too much interest.
South Coast Moneyline is a not-for-profit organisation supported by local councils which can offer personal and small business loans at reasonable interest. They have an office at 135 St.Mary Street in Southampton; Tel 02380 211864; and a website at www.scmoneyline.org.uk
Solent Credit Union is a co-operative which helps members save regularly and then can provide affordable small loans at interest of 1% per month. Membership is open to anyone over 16 who has a Southampton SO postcode. For more information contact: Solent Credit Union, Brooklands Courtyard, First Avenue, Millbrook Southampton SO15 0LJ. Tel 02380 773132