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Types of Debt

Payday Loan

If you’re struggling with your finances and considering applying for a payday loan, you should first consider the alternative solutions on offer. If your finances are getting on top of you and you are finding it hard to manage, contact us for quick, free and professional advice to help you find a better solution and avoid taking on additional debts.

Payday loans are difficult to stay on top of and there are alternative solutions that mean avoiding such extreme consequences. Call us for alternatives.

Credit Card Debt

It’s easy to understand why people get into credit card debt. Making payments with plastic cards is quick, simple, and often more convenient than cash, however all credit cards have rules and limits, and the customer will have to pay if they don’t use the card properly or sensibly. Unfortunately credit card debt soon racks up if you don’t manage it well.

Credit cards charge interest for any money borrowed, and high borrowing will mean high interest and charges; and of course credit card debt becomes higher too. The credit card provider will expect a minimum repayment each month, but this amount can be quite low.

If a customer only pays back this small amount each month, interest charges will build up over time and the bill could take a long time to clear. As well as getting high interest charges for a big credit card debt, somebody with financial difficulties could also face additional fees for late payments or overspending. Interest charges, repayments and fees can add up quickly to create a credit card debt problem.

Credit card debts can be frightening and it’s tempting to try and ignore them, but it’s much better if you deal with it sooner. Any debt situation can be addressed, and we will be able to advise or help you.

Council Tax Arrears

No one likes having to pay Council Tax, especially as it seems to be forever increasing year on year, but this really needs to be a priority bill and should be paid regularly to avoid any serious problems.

What Happens If I Don’t Pay My Council Tax?

If you miss your council tax payment, your local council will send you a reminder giving you just 7 days to pay. If you fail to pay within these 7 days, you will receive a final notice giving you 7 days to pay the whole year’s Council tax.

If you don’t pay within the final notice period, the council may take legal action to obtain the tax you owe.

If you still don’t pay the council can get your employer to pay your unpaid council tax direct from your wages. The council can also take money you owe from the following benefits:

  • Income Support
  • Jobseekers Allowance
  • Pension Credit
  • Universal Credit
  • Employment and Support Allowance

Call us today for advice.

HMRC Income Tax Arrears

Every individual in the UK must pay Income Tax if their income exceeds a certain amount, however the way this is paid varies depending on their working status. If you are employed then you will pay yours directly through your employer via Pay as You Earn or PAYE. If you have your own business then you are required to submit a Self-Assessment tax form on 31st January following the end of the tax year which will determine how much tax you should pay.  The tax year runs from 6th April – 5thApril.

For those of you that are employed and pay your tax via PAYE, it is deducted straight from your salary.  You will receive your tax code through the post each year and you are responsible for ensuring it is correct.  The tax code tells you how much you can earn before you start paying tax.   However, mistakes do happen and some may find that they have been underpaying tax. When this happens, as long as the debt is below £3,000, then HMRC can change your tax code in order to collect the underpayment without you having to do anything.

If you are self-employed you must submit a Self-Assessment tax form each year. This form must be submitted to HMRC by 31st January following the end of the tax year and is usually submitted online.   Once you have submitted your self-assessment, HMRC will inform you how much tax you owe for that financial year. If you are unable to pay then it is extremely important you act as quickly as possible.

If you have had a tax bill that you are struggling to pay, we might be able to help you.
Call us for debt advice 01656 661426 and we will talk you through your options.

Secured Loans

A secured loan is a loan taken against an asset such as a property, where the creditor/lender can legally sell your house or asset to obtain their money back if you struggle to repay.

Borrowing money against an asset to pay off debts may not an ideal way to pay off your debts. Your home or property may be repossessed if you fail to pay the loan.

If you are struggling to pay a secured loan or other outstanding debts, call for free debt advice 01656 661425.

Utility Bill Arrears

In these tough economic times, many people are finding it difficult keeping on top of monthly outgoings especially with utility bills making up an ever-increasing proportion of the average family’s monthly spend. it’s easy to see how many people can fall behind on their payments for gas, electricity and water.

What if you get into arrears?

If you get into arrears with any of your utility bills, don't ignore the situation and hope the problem will go away.

Although you won’t necessarily have any of these services cut off after a few missed or late payments, if you allow arrears to build up, there could be serious consequences for you.

What should you do?

  1. Contact the utility company.
    If you've fallen into arrears contact the utility company to discuss the problems you’re having in making payments to them. This shows them that you know about the arrears and you want to find a way to resolve the problem. Utility companies have strict policies in place which govern the way they deal with customers in arrears. They should be prepared to work with you to find a realistic solution.

Check your bills
If your utility provider is basing your bills on ‘estimated’ usage amounts, this may not reflect  the actual amount you are using, so you may be overpaying. Overpayments will always be set against future bills but paying more than you need to when you are getting into arrears doesn’t make sense.

Problems with debt?

If you are struggling with paying utility bills or other debts, call us for advice and we will discuss the best solutions available to you. Call 01656 661426

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