Citizens Advice Charnwood says don't ignore debt problems

Lily's story: I've been renting my house for 3 years which has been difficult financially but I've managed, but now the landlord is putting the rent up from £650 a month to £775 and I don't know how I'm going to afford it. I work part-time, so don't earn a lot. I can't do more because of the kids. The gas and electric have gone up and I've been really struggling to make ends meet. The local food bank has been a big help but I have been falling behind on all my payments and just know I'm getting more and more in debt. I'm so worried, I don't know what to do.

It is important not to panic about debt problems but also not to ignore them - they won't go away. If you owe money there are things you can do. Lily needs to sort out which are urgent (priority) debts as they must be dealt with first. It is best to seek help immediately if you have urgent debts. These include :-

• Rent or mortgage arrears – could make you homeless through eviction
• Council tax arrears – this can lead to court action & bailiffs
• Gas or Electricity bill arrears – your supplier could cut you off
• TV licence – non-payment could lead to a court fine
• Court fines – non-payment if you have the money could lead to prison
• Unpaid income tax, VAT or National Insurance – could involve bailiffs or deductions from your wages
• Unpaid child maintenance – money could be taken from wages or bank accounts or if you have the money but don't pay, could lead to prison
• Phone or internet – vital access could be cut off

If Lily has fallen behind on her payments then it is likely she has some urgent or priority debts. Before seeking help Lily should write down details of her income and essential expenditure, then make a complete list of her debts and collect all the letters and other documents that refer to them. This will save time and ensure the person helping her can act quickly on her behalf and work out which of her priority debts should be dealt with first.

If Lily has other non-urgent debts, like water bill arrears, credit or store card debts, unsecured loans including PayDay loans, etc., it should be possible to ask the creditors to stop chasing her for them while the urgent debts are dealt with.

Citizens Advice Charnwood provides a free, independent and confidential Money Advice Service to people with financial problems or struggling to make ends meet.Telephone 01509 221228 to make an appointment with one of our Money Advisers - if no reply, leave a message with your details so we can call you back.

For help generally with debt problems call our Enquiry Line on 01509 649605 Monday, Tuesday & Thursday 09.30-15.00
(please be patient as due to the cost of living crisis our volunteers are extremely busy)

More information can be found on www.citizensadvice.org.uk/debt-and-money

For general information about our services go to www.charnwoodcab.org.uk