The Government has produced an excellent document entitled Real Help Now, providing information on finances, employment, debt and other issues of financial concern. Visit their Real Help Now website for more information and useful links. For specific help with your mortage, visit www.direct.gov.uk/mortgagehelp
For a downloadable form of the regional Real Help Now booklet, click here.
In the meantime, here is some advice which you may find useful if you are facing financial difficulties.
You will find details of some useful contacts and websites at the bottom of the page.
(While reasonable efforts have been made to supply credible organisations' websites, Sharon Hodgson is not responsible for their content and their use is entirely your own decision.)
Unemployment
If you are about to be made redundant, "Real Help Now" provide useful advice on your rights. You should receive due warning and also your employer should consider alternatives to redundancy. They must also pay any redundancy money you are due.
The "Advisory, Conciliation and Arbitration Service" (ACAS) offers free, confidential and impartial advice on all employment rights issues. You can call the ACAS helpline on 08457 47 47 47 from 8.00 am to 6.00 pm Monday to Friday or the local helpline on 0191 269 6000.
From 13 weeks of unemployment, you may receive help with rent or your mortgage.
ACAS website
Employment
The "Real Help Now" website includes a useful section which enables you to look for employment and gives help while you are looking. Click Jobseekers DirectGov here for more information.
There is also advice on applying for jobs and writing CVs, which could be useful for application forms or interviews.
You can get free careers advice by calling the Careers Advice Service on 0800 100 900, or by visiting your local Job Centre Plus.
From 6 months unemployment, employers will be given ‘golden hellos’ to employ and train unemployed people.
- There will be new training places: extra funding for training places to help unemployed people get new skills to maximise their chances of getting jobs
- Help and advice on setting up a business from JobCentre Plus.
Benefits
You will also be entitled to certain benefits and training if you are out of work. The best approach is to contact your local Job Centre Plus, as they can advise you on benefits and also help you in your search for a job. It you are unable to work for any reason, it is best to contact Job Centre Plus or the Social Security Office. A list of contact details is available at the bottom of this page.
Housing
If you are having difficulty paying your rent, real Help Now offers several ways of getting back on track.
- make a list of all your debts and put them in order of priority
- write down all your income and expenses - then see how much you've got to pay your debts
- work out how much you can afford to pay to each creditor (a person or organisation you owe money to)
- consider seeking advice from a debt advice agency such as National Debtline 0808 808 4000 (see below for contact details) National Debtline website or the Consumer Credit Counsellilng Service.
- most importantly, talk to your landlord - try to reach an agreement about paying off the arrears, but don't agree to pay more than you can afford. One way to do this is through an agreed Debt Management Plan (DMP).
- If you’re on a low income, or are having financial problems, you should check if you can qualify for benefits. You may qualify for more than one and even if you have a job, it does not mean that you are not eligible. The best place for advice on benefits is your local Job Centre Plus.
- If you find yourself facing homelessness, Sunderland City Council hopes to soon provide an access unit for young people and a domestic violence refuge, and they are currently reviewing their support for homeless people in the area. They are also aiming to make more places available for homeless people to stay. If you think you need their help and are worried about this issue call the Housing team on 0800 731 2963.
Mortgage
If you are struggling to make payments, your lender may agree to reduce your payments for a short period, give you a ‘payment holiday’ or extend your mortgage term to reduce payments.
The Mortgage Rescue Scheme aims to help 6,000 households in difficulty over the next 2 years. You should contact your local council to see if you are eligible. Sunderland 0191 520 5555 and Gateshead 0191 433 3000.
Budgeting
Writing a budget can be a good way to prioritise bills and essentials, and help you work out a payment plan. First calculate all your essential outgoings, including household bills, rent, credit cards, and also items such as food and clothing. Then work out your income, including any benefits you are entitled to.
If you have a shortfall, consider shopping around for better value electricity, gas, food items; buy only the bare essentials and deal with debts immediately.
Check if you are entitled to any benefits.
Note down everything you spend, as this will help you keep on top of all outgoings.
Try to save money on heating, electricity or gas bills by being more efficient. For example, you could turn off appliances rather than leaving them on standby, use energy efficient bulbs and switch off lights. These are small steps, but they could help to save you money.
Debt
There are several different ways of borrowing money. Banks offer overdrafts, credit card are another option. But make sure you check out all the advantages and disadvantages of each available option. Interest rates do vary widely.
This Money Made Clear website provides useful information on APR and interest rates, and may help you avoid any pitfalls that will leave you paying more than you should.
Bailiffs - Your "creditor" (the person you owe money to) can make a claim against you in the County Court. A County Court Judgment (CCJ) may be made stating you must repay the debt.
They can ask the court to issue a 'warrant of execution', which means that bailiffs may be called in to help recover the debt.
If you owe tax to HM Revenue & Customs (HMRC), or Council Tax to your local authority, they may send bailiffs to recover the debt.
You don’t have to let bailiffs into your home, unless they are their on behalf on HMRC and have a magistrates’ warrant.
If you have been evicted by your landlord, and they have obtained a County Court possession order, bailiffs are allowed to enter your home.
Debt Collectors cannot enter your home to take possessions. If you are being harassed by a debt collector, contact your local council immeditely.
Getting involved with 'loan sharks' is a bad idea, as they charge very high rates of interest and often use violence. To find out if a lender is licensed before you borrow from them, call 020 7211 8608. However, if you are already involved with one, contact your local Trading Standards Office immediately. You can find out where this is by going on their local trading standards website, or calling 0191 553 1717 for Sunderland Trading Standards office. You can also contact the North East illegal money lending team on 0800 030 4210.
Or call Community Legal Advice on 0845 345 4 345
Community Legal Advice website
Bankruptcy
If you are bankrupt, a court can either declare you so, or you can fill in your own bankruptcy petition. Bankruptcy is serious and will affect your life in many ways, so please remember, if you are in debt, it is not the only option.
First try writing to creditors to try and agree a repayment timetable that you can fulfill.
Secondly, you could ask an Insolvency practitioner to help you negotiate with the creditor.
Or you could arrange for an administration order, through which a county court orders you to make payments to the court, which the court then distributes amongst your creditors.
Banking
The Government is doing what it can to encourage lending and protect your savings. Your savings are guaranteed up to £50,000. The Government is also helping banks to have more confidence in lending, so that mortgages can be given and money will be made available.
Useful contacts
Job Centre Plus in Sunderland, call 0191 554 6300
Wear View House
1 Eden St West
Sunderland, SR1 3EY
Local Councils
Sunderland City Council - Sunderland Council Credit Crunch Advice >>
Civic Centre, Burdon Road, Sunderland SR2 7DN.
(0191) 520 5555.
Gateshead Council
Civic Centre, Regent St, Gateshead NE8 1HH.
0191 433 3000
Turn2us
North East charity offering advice
0808 802 2000 - between 8am and 8pm Monday-Friday or visit the Turn2us website.
National Debtline
0808 808 4000 or visit the National Debtline website
Shelter
The charity Shelter also offers help if you are having housing problems.
To contact, call 0808 800 4444. http://england.shelter.org.uk
Consumer Credit Counselling Service Helpline
0800 1381 111, www.cccs.co.uk
Trading Standards Office
www.tradingstandards.gov.uk
Sunderland - 0191 553 1717
Credit Action
Credit Action is a charity providing useful advice on avoiding and dealing with debt: www.creditaction.org.uk
They provide all debt counselling and management services totally free. Their free Helpline number is 0800 138 1111.
Advisory, Conciliation and Arbitration Service (ACAS)
Help with employment disputes
www.acas.org.uk
0191 269 6000
Community Legal Advice on 0845 345 4 345
Community Legal Advice website
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