Managing Money Problems Managing Money Problems
Financial Wellbeing
Top tips for managing your money
Budgeting
Benefits
Banking
Savings and affordable credit
Energy costs
Home contents insurance
Debt advice
Illegal money lending
Bernicia
Top tips for managing your money
1) Budgeting - add up all the money that you have coming in and work out what you have to pay out. From this you will find out what you have left.
2) Benefits - make sure that you are receiving the right money:
i. If you work, are you on the right tax code? Could you also be entitled to benefits to top up your wages?
ii. If you are claiming benefits, are you getting the right one’s?
3) Banking - open a basic bank account. This will help you budget better by setting up direct payments from your account to the people you pay your bills to – including your rent to Bernicia.
4) Savings and affordable credit - open a savings account for treats and emergencies – even if you save a few pounds per week it will soon add up. Saving with a Credit Union can open up access to affordable borrowing.
5) Energy costs - review the amount you pay for gas and electricity to make sure you get the best deal from your energy supplies.
6) Home contents insurance - make sure you have home contents insurance cover. Don’t be caught out if an unexpected event damages your possessions – things are expensive to replace. Bernicia can offer tailored insurance packages for your home contents from less than £1 per week.
7) Debt advice - contact organisations who can help if you are in debt or you are struggling to make ends meet. Let organisations you owe money to know you are struggling, they may be able to renegotiate payments.
8) Illegal money lending - don’t get bitten by loan sharks. No matter how hard your situation is, there are organisations that can help without having to go to illegal money lenders.
9) Bernicia - if you are a tenant of Bernicia and are struggling to pay your rent or with any aspect of managing your home – get in touch with us early – don’t let a small problem grow into a big one!
Telephone: 0344 800 3 800 Email: [email protected]
Budgeting
Good money management can mean many things – from living within your means to saving for short and long term goals, to having a realistic plan to pay off your debts.
If you want to get on top of your finances, a budget is a really good way to start. Basically it’s just a record of money you have coming in (from things like your salary or wages, pensions or benefits) and payments that you make (such as rent, council tax, gas and electricity and other living expenses). What’s left is what you have available to spend on other things.
There are many ways you can set up your own budget including using a spreadsheet on a computer or by simply writing it down on a piece of paper. The Money Advice Service offers an online budget planner that takes about 30 minutes to complete after which you can save your results and return to update them at any time. Visit the Money Advice Service Budget Planner (www.moneyadviceservice.org.uk/en/ tools/budget-planner).
Benefits
The benefits system is complex and wide ranging, every year £millions are left unclaimed. Even if you are working there may be some extra help you are entitled to, check out the links below to find out more about current benefits and any planned changes.
Benefits entitlement www.gov.uk/browse/benefits/entitlement
Benefits for families www.gov.uk/browse/benefits/families
Carers and disability benefits www.gov.uk/browse/benefits/disability
Child Benefit www.gov.uk/browse/benefits/child
Death and benefits www.gov.uk/browse/benefits/bereavement
Heating and housing benefits www.gov.uk/browse/benefits/heating
Jobseekers Allowance and low income benefits (including Income Support, Budgeting Loans and Pension Credits) www.gov.uk/browse/benefits/jobseekers- allowance
Tax credits www.gov.uk/browse/benefits/tax-credits
Universal Credit www.gov.uk/universal-credit
Universal Credit is a new benefit that replaces 6 existing benefits with a single monthly payment. For further information see Universal Credit section on our website.
Banking
There are lots of reasons why you might need a bank account
Paying bills - instead of remembering when you have to pay your monthly bills, you can arrange automatic payments to come out of your bank account at a fixed time. It’s an easy way of paying your rent.
Keeping cash safe - while you think keeping cash in your home is safe – it’s not protected from things like flood, fire or theft. In a bank your money is insured, which means it’s safe.
Getting your wages - many employers will only pay your wages into a bank account, so if you’re looking for work be ready; having an account will be one less thing to think about when you start work or change your job.
Checking your balance - managing your money is easier when you can see what you are spending it on. You’ll receive regular statement through the post – or you can check online – that will list when your money goes out and comes in.
Living without debt - with many basic bank accounts, they’ll tell you when you try to get money out at a cash point or pay for something that you are out of cash – on some accounts you can even set up an alert, so if you are getting low on funds, you receive a text to warn you.
Receiving benefits - the government has stopped paying benefits by cheque – so having a bank account is essential to receive your payments.
Shopping online - having an account means you can buy things – in many cases cheaper than on the high street – online, saving time and money.
Personal safety - carrying cash makes it an easier target for thieves. Carrying a debit card means your money sits behind a PIN code that only you know.
There is a useful guide to bank accounts and products available from the Money Advice Service www.moneyadviceservice.org.uk/en/categories/bank-accounts-and- credit-or-debit-cards.
Savings and affordable credit
Credit Unions can offer safe savings accounts and low cost loans.
A credit union is a financial co-operative that offers safe savings accounts and low cost loans to members. They are regulated by the Financial Services Authority (the UK’s financial services’ regulator).
Credit Unions are great because:
• Everyone is welcome and it’s easy to join. • Paying in and service points are available locally. • Your money stays within the local community.
They offer:
• Flexible ways to save from as little as £1 per week. • A range of services, including Junior Savers accounts. • Regular savers who are over the age of 18, apply for the ability to low cost loans (minimum £50). • Quick loans for non members may be available from some credit unions.
Credit unions can help you manage your money better by encouraging you to save what you can. Once you have a reliable record as a saver, you can apply to borrow money. Credit unions will only let you borrow what you can afford to pay.
Many credit unions offer more than just savings accounts and loans. Credit unions can offer a whole range of different financial products such as ‘Quit and Save’ for people cutting down on smoking, Family Funeral Plans, and schemes to supply cookers, fridges and other household items.
Northern Money is a directory of North East credit unions. It is designed to make it easy for people to find information about savings and loans in their local areas.
To find out more visit www.northernmoney.org.uk where you can locate your nearest credit union and information about the services they provide by entering your home or work postcode into the search facility.
Alternatively telephone 0191 2794881.
Energy costs
Don’t pay over the odds for gas and electricity.
uSwitch is a free, independent and impartial comparison and switching service either online, or by phone, that is designed to make sure you’re getting the best price for your energy.
The process is simple and quick and can be easily completed in a few minutes either online or by using the Freephone helpline.
Why use uSwitch?
• All of the paperwork is taken care of for you. • There is no charge for the service. • Comparisons are made with all UK energy suppliers. • Using the service and switching is easy. A dedicated phone line is available to answer all enquiries and help you switch. • Ofgem accredited
Visit www.uswitch.com or call Freephone 0800 6888 244 to get started, all you will need is your postcode and your most recent energy bill to hand if possible.
Home contents insurance
What would you do if you lost everything in your home? Buying everything again would cost a fortune, so contents insurance is vital if you’re going to cover yourself for unexpected events like a burglary, fire or flood.
You might believe that Bernicia automatically insures your furniture, belongings and decoration against fire, theft, vandalism or water damage such as burst pipes. THIS IS NOT THE CASE.
Unfortunately, sometimes this only becomes a reality after the damage is done. To make it easy for you to insure your belongings we have a special household contents insurance scheme. This insurance scheme is arranged with Royal and Sun Alliance Insurance plc and is available only to Bernicia tenants.
There are 2 cover levels you can choose from:
SIMPLE
• Most of your household goods and contents including pedal cycles and computer equipment are insured whilst in your home. • They are covered against loss or damage caused by specific events such as theft, fire and flood. • Also insured are lost or stolen keys, freezer contents, your own legal liability to the public and the cost of alternative accommodation. • Improvements you have made to your home such as fitted kitchens, bathrooms, wardrobes, laminate flooring, patio doors etc (but not greenhouses or conservatories).
SIMPLE+
• Simple+ includes Accidental Cover
You may also have the option to add cover for Personal Belongings, Hearing Aids or Wheelchairs to Simple or Simple+.
For full details of the scheme click on the above leaflet.
Debt advice
Facing up to debt can be a difficult experience, but there is lots of free, confidential help and advice available, so there’s no need to pay a debt management company to sort out your money worries.
Visit the Money Advice Service www.moneyadviceservice.org.uk/en/articles/ where- to-go-to-get-free-debt-advice
The MoneyAware blog gives advice and information to help people from falling into problem debt – the point at which the bills go unpaid, bank fees and charges mount and the worries and stress grow. MoneyAware: www.moneyaware.co.uk
Scams and illegal money lending
Don’t be a victim of a scam.
Whilst the chances of you being affected by a scam are relatively low, we want to remind you to be vigilant against any attempts to basically ‘con you out of cash’.
There are hundreds of types of scams – fake lotteries and prize draws, schemes to make money quickly, fake investment plans, work from home schemes – the list goes on and on. Scams come in different forms, such as letters, emails, telephone calls, text messages or visits to your home.
In most scams you’ll be asked to:
• Send money upfront. • Give out your bank details. • Ring a premium rate number. • Buy something to get a prize.
Scam artists will:
• Catch you unawares, contacting you without you asking them to, by phone, email, text, post or in person. • Sound pleasant and professional. • Be persistent and try to rush you into a decision. • Ask you to send money before you receive their offer of work.
Preventing scams:
• Do not pass your bank account details to anyone over the phone. • Beware of persons who claim that you have won money, it is likely to be a scam. • Never send anything without being sure of its destination. • IF IT SOUNDS TOO GOOD TO BE TRUE, THEN IT OFTEN IS.
You can opt out of receiving unsolicited calls by contacting the Telephone Preference Service on 0845 070 0707.
If you are a victim of a scam you should report it straight away, your local Citizens Advice Bureau (CAB) provides free, confidential and impartial advice on consumer issues. Find your nearest CAB online at www.adviceguide.org.uk.
Illegal money lending
A loan shark is someone who lends money without the appropriate licence issued by the Office of Fair Trading. Loan sharks, rarely, if ever give any paperwork and if payments are missed they may use intimidation or violence to get money from their clients.
If you have ever:
• Been offered a cash loan. • Been threatened with violence when you couldn’t pay. • Had your bank card taken as security. • Ended up with a growing debt even if you are making payments.
You should report this – IN CONFIDENCE – to:
The Illegal Money Lending Team – England
Email: [email protected] Telephone: 0300 555 2222 (Available 24 hours) Text: LOAN SHARK and the lender’s details to 60003. Useful contacts
StepChange
StepChange is a national debt charity which helps people overcome their debt problems. They offer: • Free and confidential debt advice • Full assessment of your financial situation • Tailored solutions • Repayment arrangements • Ongoing support to become debt free For free debt advice call 0800 1381111 or visit www.stepchange.org
Benefits checker Stepchange benefits calculator is always updated with all the latest welfare reforms. Find out if you’re affected and check what you’re entitled to. www.stepchange.org/Benefits-check
Utility switching Comparing utility providers is a quick and easy way to see if you could save money by changing your current gas and electricity suppliers. Why not try Stepchange’s free and impartial service to compare, switch and save? www.stepchange.org/Utility- switching
The Money Advice Service
The Money Advice Service began life in April 2010 as the Consumer Financial Education Body (CFEB) which was established under the Financial Services Act in 2010 with all-party support. The Act makes clear CFEB’s duties to enhance the nation’s financial capability. It has a responsibility to develop consumer financial education, raise public understanding and knowledge of financial matters and the ability of people to manage their own financial affairs. In April 2011 CFEB was renamed the Money Advice Service. It was not a rebranding exercise but a deliberate choice. Advice is key to its purpose as several reports, notably Otto Thoresen’s to the Treasury in 2008, and other evidence highlighted the provision of generic financial advice as critical to improving the country’s financial capability.
Citizens Advice Bureau
The Citizens Advice service aims:
• To provide the advice people need for the problems they face. • To improve the policies and practices that affect people’s lives. The service provides free, independent, confidential and impartial advice to everyone on their rights and responsibilities. It values diversity, promotes equality and challenges discrimination. • As the UK’s largest advice provider we are equipped to deal with any issue, from anyone, spanning debt and employment to housing and immigration plus everything in between. • During 2010/11 bureaux advised clients on almost 7.1 million new problems. • These included 2.2 million debt problems, 2.1 million problems with benefits and tax credits, and 0.5 million employment problems.
There are also several specific debt advice services that can be accessed both on and off-line.
National Debt line Debt Centres
Borrowing money
There are lots of options to choose from when thinking about borrowing money, some are much better than others and many may only be available to you if your circumstances fit the lenders conditions.
The most important thing is to always get advice if you are unsure about any form of new borrowing. Some of the agencies above could give you free and impartial advice.
For more information on what a Credit Union is click the FSA logo.
Credit Unions are an ethical and inexpensive way to borrow money. Bernicia has recently created a partnership with CUSEN (Credit Union for South East Northumberland) who are able to accept membership applications from any Bernicia Tenant or partner or any employee. If you would like to apply to join CUSEN please contact the Tenancy Support Team on 0191 2383176.
Reducing Your Outgoings and Maximising Your Income
The best way to make your money go further is to ensure that you buy goods and services at the lowest possible price and to make sure you have all the money you are entitled to coming in. http://www.turn2us.org.uk/ http://www.energysavingtrust.org.uk/ http://www.moneysavingexpert.com/ http://www.direct.gov.uk/en/Diol1/DoItOnline/DoItOnlineByCategory/DG_172666