DEBT ADVICE

If you are having problems with debt, below is a few extracts from Citizens Advice Bureau literature and some helplines.

If you are worried about mounting debts please contact the Citizens Advice Bureau straight away they are very friendly and will help.

 advice 01692 402570  appointments 01692 405847

Some debts are more important than others.The law gives different creditors different ways of getting their money back. If you don't act quickly, some creditors could :

• take away your home. ( called 'repossession' or ' eviction')
• cut off your gas or electricity. ( not water )
• send the bailiffs to take furniture from your home.
• ask the magistrates court to send you to prison.

 Priority Debts.

 It is important to use your money to make agreements to settle these debts first.

• TV licence.
• Mortgage arrears.
• Second mortgage or secured loan.
• Rent arrears.
• Council Tax and Community charge.
• Gas or electricity.
• Magistrates court fines.
• Maintenance.
• Hire purchase or conditional sale.
• Income tax, National Insurance and VAT arrears.

Creditors can take action on some priority debts without going to court first. For example gas and electricity companies can disconnect you.HM Revenue and Customs can send bailiffs without a court order for VAT and income tax debts. Your other creditors can take action only after court action.

 But don't panic. You will always be given warning and as long as you act quickly, you should be able to stop these things happening.

 Helpful guidelines in managing your debts.

 1. If you have a current account that is overdrawn or you have a loan or credit card at the same bank then open another basic current account at a different bank.

 2. Transfer all your income into the new account.

 3. Cancel any Direct Debits and Standing Orders in writing on your previous account.

 4. Set up new Direct Debits and Standing Orders for essential living expenses in your new current account.

 5. After consulting with your Citizens Advice Bureau for final checking and pro-rata calculations, send out letters and a Personal Budget Sheet to your creditors.

 6. Any form of debt management will affect your credit rating. However if you have already defaulted, this may already be recorded on your credit file.

The following is a list of advice centres.

 www.norfolk.gov.uk/debtandmoneyadvice

 www.citizensadvice.org.uk

 www.nationaldebtline.co.uk

 www.adviceguide.org.uk