09 February 2012Reality check – assess your situation
Reduce your outgoings
Maximise your income
Talk with those who could help you
Reality check – assess your situation
Write down all your income and outgoings on a budget sheet (
PDF File 32KB file details) no matter how embarrassing or difficult this might be. Only by being honest about your finances can you put a plan in place to turn the situation around.
The budget sheet should help you to identify your essential outgoings and priority debts. Essential outgoings include rent or mortgage payments (and any arrears), food, heating, lighting, essential travel costs, secured loans, Council Tax and any debt for which non payment could result in a prison sentence.
If you need help filling out a budget sheet a Housing Officer from the Council's Social Housing Team can help you. Call 01732 227431 or e-mail housing@sevenoaks.gov.uk to make an appointment. Alternatively contact your local Citizens Advice Bureaux.
Having completed your budget sheet, you are ready to create a budget plan to keep your expenditure within set limits while making payments towards outstanding debts that are out of control.
Once you have made your budget plan make sure you stick to it. It’ll be hard work to begin with but for some people it can make the difference between losing or keeping their home.
When making your budget plan, you will need to consider where you can cut back.
Consider destroying your credit and store cards so you are not tempted to use them. End your contract for satellite television. Cut down on takeaways and shop in value supermarkets. Change your contract mobile phone to pay as you go and pay your utility bills by direct debit, or if you have a computer, paperless billing. Visit one of the many comparison websites for more information and other money saving tips.
The Energy Saving Trust Advice Centre, working in partnership with the Council, provides advice on saving energy in the home, along with grants and discount schemes for energy saving measures such as insulation and heating. These measures can help to reduce fuel bills. Contact the Energy Saving Trust Advice Centre on 0800 512 012 or e-mail www.energysavingtrust.org.uk.
If you have non-priority debts such as credit/store cards, non secured loans such as a bank loan, catalogue debts or a debt to a satellite television company, pay your priority debts first. You will need to renegotiate the instalments you currently pay on these debts to maximise the money available for paying your rent or mortgage. There are many organisations who will help you to do this free of charge, including the Citizens Advice Bureau. For more contacting a Housing Officer at the Council by calling 01732 227431 or e-mail housing@sevenoaks.gov.uk.
Providing your mortgage lender or landlord agrees, you could take in a lodger. You could also ask any adults or children living with you to make a greater contribution to the household finances. These steps could mean the difference between keeping and losing your home.
Whatever your work situation you could be entitled to benefits.
If you are not working, check that your Tax Code is right. If not you could be paying too much tax. Visit the Revenue & Customs Website for more information
www.hmrc.gov.uk/pensioners/understanding.htm.
If you are a member of a trade union or other professional organisation, contact them to see if you’re eligible for a grant or other financial help.
In cases of severe hardship. Charis may be able to help by giving one-off grants to individuals to pay utility bills depending on their utility supplier. Visit www.charisgrants.com for more information.
Talk with those who could help you
If you are still struggling, speak directly with those who can help you.
If you are a homeowner, speak to your mortgage lender. Lenders have a range of hardship options at their disposal and the sooner you contact them, the more they can do to help. They may be able to extend the terms of your mortgage, switch to an interest only mortgage for a set period of time or recapitalising arrears. If you need help and support with speaking to your mortgage lender, contact a Council Housing Officer by calling 01732 227431 or e-mail housing@sevenoaks.gov.uk.
You could consider changing your mortgage to get a better deal. Visit www.fsa.gov.uk/tables for independent information on comparing specific mortgage product features.
If you rent your home and you have arrears, make contact with your landlord. If the reason you have rent arrears is short term, your landlord may be prepared to enter into an agreement with you to pay the rent plus an affordable sum off the arrears each month. If your circumstances have changed and you need to make a claim for housing benefit, you may be able to make a claim for back dated benefit to cover some of the arrears.
For more information about any of these issues, contact a Housing Officer at the Council by calling 01732 227431 or e-mail housing@sevenoaks.gov.uk.
