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Dealing with Debt Why should I consider debt advice? It is very difficult to deal with ongoing debt problems on a student income whilst also trying to cover priority costs such as rent/mortgage, utility bills, council tax and food. If you are struggling to make minimum debt repayments as well as cover day to day living expenses, it’s time to seek help. Taking the time to seek advice will relieve the stress you feel regarding your debts, provide support from debt experts and provide a clear path for becoming debt free. Can I apply for help from the Swansea University Opportunity Award? The Swansea University Opportunity Award may be able to help over a short term period whilst you seek advice and deal with your debts but is not available to repay ongoing debts or support with long term debt problems. If you are struggling financially it is well worth you applying so that you can be assessed for support, but it is important to be aware of the fund’s limitations as outlined above. Whilst you are eligible to apply for an award this does not guarantee an award will be made, so it is important to be realistic with your expectations. What is debt counselling? Debt Counselling is the term used to describe the action of a person taking debt advice. This usually includes writing to all of the companies who you are in debt to, requesting that all interest and charges are stopped, and agreeing a monthly payment which is affordable according to your income. A financial statement (budget sheet) will be completed and sent to the companies to evidence how much you can afford to pay. Challenge yourself to see if you can turn your finances around; it doesn’t have to be boring and you may find that you become a money saving guru. We understand that some steps may seem difficult, but there is no situation which cannot be solved. It may not be easy and it may take time, but it can be done. Won’t that effect my credit rating? Undertaking debt counselling will have a negative effect on your credit rating. However, most people who are struggling to cover debt and/or priority payments (rent, utilities, and council tax) will be negatively affecting their credit rating every time a payment date is missed. It is expected that whilst undertaking debt counselling, no further credit is taken to ensure you can work towards being debt free. How can I undertake debt counselling? To truly benefit from debt counselling you should aim to empower yourself by taking control of your finances. This does not mean that help and support is not available and there are a number of organisations who can provide FREE impartial advice. You should NEVER have to pay for debt advice. National Debtline National Debtline has a full range of resources and help sheets available on its website (www.nationaldebtline.org) as well as having fully trained advisors available to speak to. It is free to contact National Debtline for help and support over the phone (0808 808 4000) and you can also request a free copy of their “Dealing with your Debts” pack.
For students who wish to take on their debts themselves, they can use the ‘my money steps’ website to guide and support them through the debt process (www.mymoneysteps.org). It is free, confidential and simple to use and provides expert debt advice online, whenever you need it. Stepchange Stepchange (formally known as Consumer Counselling Credit Service or CCCS) is another organisation that can provide free confidential advice over the phone. They can be contacted at www.stepchange.org or by calling 0800 138 1111 (this number is free to call from mobiles and landlines). They, too, have support available so that people can take control of their own finances, available at www.stepchange.org/Debtremedy. Citizen’s Advice Bureau (CAB) If you feel you’d benefit from one to one support in dealing with your circumstances it may be worth contacting your local Citizen’s Advice Bureau. If they cannot provide this support themselves, they should be aware of the local charities that do, and be able to point you in the right direction. To find your local CAB office please visit: www.citizensadvice.org.uk. Others Other providers of free confidential debt advice, which you may wish to consider, are: Debt Advice Foundation: for more details see www.debtadvicefoundation.org Money Advice Trust Cashflow: for more details see www.cashflow.uk.net Money@CampusLife’s Top 10 tips to deal with your debts 1. Don’t Panic! Confront your debts and don’t stick your head in the sand as debt won’t go away unless you do something about it. 2. Take control of your finances. Check your bank statements, where is your money going? 3. Are you spending too much? Can your income be improved? 4. Is there a reason why you’re spending too much money? 5. NEVER pay for debt advice! 6. Budget – If you don’t need it don’t buy it! Check out our online financial capability modules http://campuslifemoneymodules.weebly.com/ 7. Benefit check – do a quick check at http://www.turn2us.org.uk/benefits_search.aspx to ensure you’re getting everything you’re entitled to. 8. Join the Money Saving Expert’s Cheap Energy Club to ensure you are on the cheapest energy tariff available to you - www.moneysavingexpert.com/cheapenergyclub. 9. Are there emotional or psychological issues which have led to you becoming in debt? Or are your debts causing you to suffer from additional stress and anxiety? Contact Wellbeing@CampusLife for advice and support. For more information visit www.swansea.ac.uk/wellbeing-campuslife/ or contact them on 01792 295592. 10. Reduce food shopping costs by trying the Downshift Challenge http://www.moneysavingexpert.com/shopping/downshift-challenge/. Supermarket own-branded goods are often just as good as branded products but are usually half the price. CONFIDENTIALITY: All information dealt with by the Money@CampusLife Office is done so in the strictest confidence. On the occasions that we need to consult staff from other departments, we will do so only with your prior consent. *Information correct as of September 2016.
money.campuslife@swansea.ac.uk 01792 606699 www.swansea.ac.uk/money-campuslife/