Credit Crunch: Managing Debt

Your Mortgage

• Solicitor in Court:Scott Duff and Co, Solicitors, have received funding from us for a free court desk service to provide advice and advocacy from trained solicitors for people at court facing repossession. This service can help tenants as well as homeowners.

• Mortgage Rescue Scheme:is designed to help some of the most vulnerable families from losing their homes and facing the trauma of repossession. If you would like to know more about mortgage rescue schemes in Eden please contact:
  
  Riverside: English Gate Plaza, Botchergate, Carlisle CA1 1RP - telephone: 0800 169 3245

Further information on mortgage rescue schemes see:

• Shelter: homeowner helpline 0300 3300 515
• Eden Housing Association 01768 681470
• Directgov's webpage on 'Mortgage rescue scheme'
• Directgov's webpage on 'Mortgage rescue scheme extended'
• Citizens Advice Bureau webpage 'Mortgage rescue schemes'.

Mortgage Payment Problems:

• National Homelessness Advice Centre (NHAC): provides the useful leaflet 'Are you worried about your mortgage, for people worried about keeping up with their mortgage payments. 
• Directgov's webpage on 'Mortgage arrears or payment difficulties'.
• Directgov's webpage on 'Mortgages and repossessions'
• Directgov's webpage on 'Getting help with your mortgage interest payments'

Managing Different Types of Debt

• Priority Debts: Such as mortgages or rent, utilities (gas, electric, water or telephone), TV Licence, Council Tax, Car tax/insurance, finance for cars/goods. Try to keep up to date with payments as these types of debt can result in repossession, fines or even a criminal record.
• Credit and Store Cards: These can have high interest rates so try to pay as much as you can off the balance every month. Alternatively, move the balance to a new card which offers 0% interest for an introductory period. Be careful though as when the introductory period ends the interest rate will often go up.
• Unsecured Personal Loan: Don't be tempted to 'borrow' your way out of debt by applying for a loan to pay other debts. The benefits are likely to be short term only and could result in a bigger debt problem in the future.
• Bank and Building Society Overdrafts: An unauthorised overdraft can turn out to be expensive. Arrange a suitable limit with your bank and keep within its limit.
• Debt Consolidation: Be cautious of debt 'help' or loan companies that advertise on TV or in newspapers. These are commercial businesses and in some cases you may end up paying more to them in the long term.

Other Debt Advice

• Citizens Advice Bureau has three offices across Eden, based in Penrith, Appleby and Alston. There is also a visiting advice service in Kirkby Stephen. Advice is available face-to-face and by telephone. Most of the Bureaux offer home visits and often provide email advice. The organisation also has a significant amount of helpful information on its website. The Bureaux offers free, confidential and independent advice on a range of issues including debt, benefits, housing, legal, discrimination, employment, immigration, consumer and other problems and is available to everyone regardless of race, gender, sexuality, age, nationality, disability or religion.
  Citizens Advice offer free, confidential debt advice by telephone to anyone living in Cumbria and the North-East. Telephone 0300 33 33 445.
• National Debtline is a national telephone helpline for people with debt problems in England, Scotland and Wales. You can call the helpline for free, confidential and independent advice on 0808 808 4000. The service provides self-help advice to its callers and also produces written self-help packs and factsheets to back this up. The service can also assist callers with the setting up of Debt Management Plans.
• Directgov - Managing debt.
• Shelter the housing and homelessness charity provides advice on housing, welfare benefits and debt. Free advice helpline 0808 800 4444.
• Debt Advice Foundation a registered UK debt advice charity offers free, confidential support and advice to anyone worried about debt.