Debt problems

Struggling with your mortgage? Drowning under a mountain of debts? There is help!!

What ever you do get help soon. If you leave it too late, there is less we can do to help.

Don't bury your head, it won't go away.

Are you finding it hard to make ends meet?

If so, there are a variety of organisations that provide advice on debt, offering help before, during or after you get into difficulties.

Most of these services are free of charge so if you are concerned about your finances you should take advantage of the help and advice that is available.

Weekly debt advice surgery

Held at Erewash Borough Council's Ilkeston Town Hall Offices, in the Housing Options Service every Wednesday.

Full comprehensive debt advice provided by debt advisors from Derbyshire Housing Aid, a local charity.

To book an appointment telephone the Housing Options Team on 0845 907 2244 ext 3590 without delay.

In addition there are other sources of debt advice listed below:

EREWASH CITIZENS ADVICE BUREAU
The Albion Leisure Centre, East Street, Ilkeston, Derbyshire, DE7 5HW
Tel: 0844 3752712

NATIONAL DEBT LINE
A national telephone helpline for people with debt problems
Tel: 0808 808 4000

CONSUMER CREDIT COUNSELLING SERVICE

If you are struggling with debt make sure that the help and advice you receive is entirely in your best interests - go to a debt advice charity like the Consumer Credit Counselling service. CCCS do not charge fees for their advice and if necessary can arrange a debt management plan (opens in a new window) for you for free. If you’d like to find out more, CCCS Debt Remedy (opens in a new window) is and online tool that will point you in the right direction.

Tel: 0115 9240 224

DERBYSHIRE HOUSING AID
Advice sessions held at various locations in the borough.
Tel (freephone): 01332 287850

TAX AID
If you are having problems with the Inland Revenue
Tel: 0845 1203779

CLS DIRECT

Free advice service
Tel: 0845 345 4345

Debt Support Trust

Debt Support Trust is a registered charity providing debt advice and supporting people struggling to manage their debts - www.debtsupporttrust.org.uk (opens in a new window)

Debt Advice Foundation

www.debtadvicefoundation.org (opens in a new window)

Piggy Bankrupt

Piggy's Bankruptcy website (opens in a new window)

Piggy’s website provides information on bankruptcy and debt solutions. You can read guides, tips and the personal experiences of others.

Shelter

Shelter Website (opens in a new window)

Shelter is a housing and homelessness charity who can also offer advice on dealing with debt.

Mortgage or rentarrears - negotiating with priority creditors

If you are in debt, it is important to keep in contact with the people you own money to (your creditors).

If they are unaware you are having financial difficulties, they will assume you don’t want to pay and start taking action to have their debts repaid.

It is rarely too late to start negotiating and most creditors will appreciate you contacting them.

There are two types of creditors: priority creditors and non-priority creditors.

Priority creditors are those who have the strongest remedies for ensuring they are paid (enforcing the debt) such as making you homeless, disconnecting your gas or electricity supply, or, in some cases, having you imprisoned.

Although non-priority creditors can take court action to recover their debts, you cannot be imprisoned for non-payment.

The following rules will help you in your negotiations:

Don’t ignore the problem. It won’t go away.
Contact your creditors as early as possible and explain why you are in debt.
If the first person you speak to is unhelpful, ask to speak to someone more senior who may be more willing to agree to your proposals.
Work out your income and expenses so that you know how much you have to offer to your creditors.
Make sure you tackle your priority debts first.
Don’t borrow money to repay your debts. This is likely to increase your debt and may put your home at risk. If you are unsure what to do, contact your local Citizen's Advice Bureau (CAB).
Don’t ignore creditors’ letters or phone calls. Always answer letters and don’t give up trying to make an arrangement even if a creditor seems difficult.
Keep copies of all letters and make a note of all telephone calls or meetings, including the person's name and what was agreed.
Always reply to court letters within the time limit and take advice if you’re unsure how to complete court forms.

Priority debts - mortgage or rent arrears

If you are in arrears with your mortgage or rent, you should contact your lender or your landlord immediately. Explain why you are in arrears and how you are going to repay them.

If your circumstances have changed, check whether you are entitled to help.

If you have a mortgage, you may be able to negotiate reduced payments for a period of time or have the arrears added to the amount you borrowed (capitalised), but you will need to consider your options very carefully if your situation is unlikely to improve.

You need to be able to pay the current instalment as well as payment of the arrears and will need to be able to clear the arrears within the remaining period of the mortgage.

Check your mortgage agreement to see if there are penalty charges for falling into arrears and ask your lender if they will waive these charges at least for the first few months.

If you have mortgage protection insurance, be sure to claim. You should contact your local CAB if you require further information.

If your total income is below a certain level and you pay rent, you may be entitled to housing benefit to help you pay your current rent and should contact your local council for a claim form.

You should make your landlord an offer to pay off your arrears and should immediately get advice about your tenancy and how secure you are. “Social Landlords” (like councils or housing associations) may accept quite small regular amounts to pay off arrears.

If you are claiming certain benefits you can arrange to pay your rent arrears in small weekly amounts, which are deducted from your benefit allowance (direct deductions). The rate is fixed by the Department for Work and Pensions (DWP).

Remember, your home can be repossessed and you can be evicted if you don’t pay your mortgage or your rent.

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