Managing Debt

Dealing with debt and managing your money

It is easy to get into debt but if you let debts build up it can have serious consequences. Taking simple steps to manage your money can help you pay off debts and prevent you getting into difficulty in the future.

This web page offers advice on managing and paying off debts, as well as how to keep your finances under control in future.

How we can help

As well as using the information below, you can also speak to East Thames for guidance and help. It’s particularly important to contact us if you have missed a rent payment or think you might struggle to pay your rent in the future. We can advise you on dealing with your debts and support you in keeping up your rent payments.

Call our Customer Contact Centre on 0845 6000 830 (Mon-Fri, 8.30am-8.30pm and Sat, 8.30-12.30pm) or drop into our Head Office to speak to a member of our Front of House Team (29-35, West Ham Lane, Stratford E15 4PH, Mon-Fri, 8.30am-6pm).

Six steps for dealing with debt

If you are in debt, it can be hard to know how to go about paying it off. If you follow these six steps below, your debts should be more manageable and help you avoid missing rent payments (going into ‘arrears’).

1. Speak to all the companies you are in debt to – they may be able to provide advice and work out a more manageable plan for you to repay them if you tell them about the difficulties you are having.
2. Work out how much money you have coming in and going out using a budget sheet, making sure you are able to pay at least the minimum payments for each debt. You can download an example budget sheet here.
3. Pay off your priority debts first – these are debts like rent or council tax which could lead to you losing your home or going to prison.
4. Plan how you are going pay your less urgent debts, such as an overdraft, credit cards, over a longer time period.
5. Maximise income – look into any benefits or tax credits you can claim. See below for guidance on this but do not borrow more money to pay off your debts.
6. Minimise spending – see our list of tips below.

Claiming benefits and maximising your income

You may be able to claim benefits or boost your income. We have included some information and useful contacts below to help you do this. If you need further advice call 0208 536 3955 or email maxyourincome@east-homes.co.uk.

Alternatively, you can seek information and advice from:
  • HM Revenue and Customs (HMRC) – go to www.hmrc.gov.uk or call 0845 300 3900
  • The Department for Work and Pensions (DWP) – go to www.dwp.gov.uk or call 0800 88 22 00
  • Citizens Advice Bureau (CAB) – go to www.adviceguide.org.uk, look up your local office in your phone book or call 0870 840 8080 (London only)
  • Entitled to – go to www.entitledto.co.uk to calculate whether you are eligible for benefits or tax credits.

Minimum wage

The minimum wage is set by the government and is a payment rate that no employer should go below. To find out if you are getting the right pay go to the HMRC website or call 0208 536 3955.

The rates from 1 October 2009 are:
  • £5.80 per hour for workers aged 22 years and older
  • £4.83 per hour for workers aged 18-21 inclusive
  • £3.57 per hour for all workers under the age of 18, who are no longer of compulsory school age

Benefits

Some people are missing out on benefits because they are not aware of what they can claim. For information about Income Support, Job Seekers Allowance and Incapacity Benefit contact Jobcentre Plus on 0800 055 6688 (8am-6pm Monday to Friday). You can also claim online at: www.dwp.gov.uk/eservice.

The Newham Council benefits calculator allows you to calculate the benefits you should be entitled to. Although it is provided by Newham Council, the figures should apply whatever borough you live in.

For general information on benefits for disabled people contact the Benefit Enquiry Line on 0800 88 2200 or textphone 0800 24 33 55 (for people with hearing or speech difficulties).

To apply for Pension Credit call 0800 99 1234 between 8am - 8pm, Monday to Friday.

HMRC Benefits

Tax Credits are now worth more, so it is possible that you may be entitled to more money. Renew your claim to see how much you'll receive by calling 0845 300 3900 or go online at www.hmrc.gov.uk/taxcredits.

Child Benefit can also be claimed through HMRC. You can claim Child Benefit if you’re bringing up a child or children who are: under 16 years; under 19 and studying full-time up to A level, AVCE or equivalent; or aged 16 or 17 and have recently left school and registered for work or training with the Careers Service or Connexions.

To find out more contact the East Thames HMRC advisor on 0208 536 3955 or visit the HMRC website.

Changes to Housing Benefit Rules

As from 2nd November 2009, you may qualify for higher Housing Benefits payments. This is because Child Benefit income will now be ignored completely when calculating Housing Benefit and Council Tax benefits, and people aged 60 or over are allowed more in savings before this affects their benefits.

If you receive Child Benefit payments, or if you or your partner are aged 60 or over, you could be better off.

The two changes being introduced in November 2009 are:
  • The amount of savings ignored when calculating benefits for people aged 60 or over increases from £6,000 to £10,000
  • Child Benefit income will be ignored completely when calculating Housing Benefit and Council Tax Benefit

To find out whether you qualify for higher Housing Benefits under the new rules, contact the East Thames HMRC advisor on on 0208 536 3955 or visit the HMRC website.

Child Trust Fund

A Child Trust Fund (CTF) is a long-term savings and investment account for every child born on or after the 1st September 2002. The Government provides a voucher worth £250 to start a CTF account. Parents and grandparents can then make payments to build up the fund, which the child can access when they reach 18 years old.
For more information visit www.childtrustfund.gov.uk or call 0845 302 1470.

Advice for dealing with loan sharks

Money problems can be stressful and borrowing can seem like an attractive option. However, the credit crunch means banks are less likely to hand out money and, if turned down, it could be tempting to turn to other options such as a loan shark. Loan sharks are happy to lend money so may seem like an easy option. However, they will charge high levels of interest, could demand payment at any time without notice, and if you are unable to pay they may use violence against you or your family.

If you or someone you know is experiencing problems with a loan shark you can call the London Illegal Money Lending Team 24 hours a day on 020 7364 6886, email sharkbait@lotsa.org.uk or text Sharkbait (+ your message) to 60003.

Money-saving tips

Whether you are trying to pay off debts or simply wanting to reduce the amount you’re spending, try these simple steps to save money:
  • Turn off lights whenever you leave a room and switch to energy-saving light bulbs- these last 10 times longer than ordinary bulbs.
  • Consider changing your energy supplier. Visit SwitchWithWhich or call 0800 533 031 for advice on whether you could save money with a different supplier.
  • Compare prices in different shops before making a big purchase.
  • Use public transport – it is much cheaper than filling your car up with petrol.
  • Write a shopping list before going to the supermarket. This will stop you from buying food that you don’t need.
  • Make packed lunches for you and your family instead of buying meals while at work, school or out and about.
  • Consider selling unwanted possessions on a website like eBay.

Site Map Privacy Terms Accessibility Translation © East Homes 2010