Hints and tips for managing your money
If you are experiencing difficulties, follow these tips to help manage your money:
Tackle high-priority bills
Ensure that your priority bills are paid on time. These include housing costs, secured loans, utilities, and Council Tax. You might feel pressure from other creditors, but maintaining a roof over your head and having enough money for heating and food are more important.
Inform other creditors
Let your creditors know if you are struggling to make payments. Most will be understanding, especially if your situation is due to loss of employment or ill health. You may also be eligible for payment protection insurance. If creditors are unhelpful or unfair, you can file a complaint.
Hire purchase agreements
If you have items like a car or household appliances on hire purchase, try to keep up with the payments. Failing to do so could lead to repossession. Seek legal or financial advice if repossession occurs.
Credit cards
Are you only paying the minimum on your credit or store cards? This can be costly. Consider consolidating your debts with a loan, but compare the total cost and make sure you can afford the repayments. Use tools like the Money Advice Service calculators. If your debts from credit cards or overdrafts are growing, seek advice.
Payment protection insurance
Check whether you are paying for payment protection insurance (PPI) on any credit commitments. While PPI can offer valuable cover during illness or unemployment, some policies may not suit your circumstances, such as long-term illness, age or self-employment. Review the terms carefully before deciding. The Financial Ombudsman Service provides helpful information and can assist with complaints regarding PPI and other financial products.
Mental health considerations
If you or someone you support experiences mental health issues, there are guidelines on creditor behaviour during arrears collection to help ensure fair treatment and appropriate support.