Tips for individuals
Some useful information to help Allerdale
residents fight the credit crunch and economic downturn, including
support if you are worried about losing your job or if you are
finding it difficult to pay the bills. Click on the headings below
for more detailed advice.
General advice
Do not panic and bury your head in the
sand
No matter how desperate things seem, there are
ways to manage your debts. Ignoring your debt problems will only
make them worse. Contact the people you owe money to (your
creditors) and explain why you are having problems. The sooner you
do this, the more options you will have for solving your financial
problems.
Get advice
There are many organisations that offer free
and independent money, housing or employment advice.
Pay your priority debts first
There are some debts you need to pay first
before others, because the consequences of not paying them can be
much more serious. For example, mortgage or rent debts are a
priority as if you do not pay these you could lose your home.
Work out your monthly budget
Work out how much money you have coming in and
going out of your household on essential expenses like food and
bills.
Make savings on your household expenses
Look carefully at your spending and see if
there is anything you are able to cut down on. For example, you
could shop around for a cheaper gas or electricity provider.
Maximise your income
Are you getting all the money you are entitled
to? There may be benefits available and you do not necessarily have
to be out of work to claim them.
Think twice about taking out a loan to pay off all your
debts
It might seem an easy opt out, but you may end
up paying back a lot more than you borrowed and at very high
interest rates. You may not be able to afford the repayments and
the loan may be secured against your home, which you could then
lose.
Buy locally
Businesses are feeling the effects of the
economic downturn and you can help support them by buying goods
locally.