Money MattersCustomer Handbook

1 Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Contents2 Money Matters3 Dealing With Debt5 Borrowing Money7 Budgeting Advice 9 Bank Accounts

2Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Money Matters

When money worries keep you awake at night it’s difficult to know what to do next. Constantly thinking about your finances clouds your judgment and you can end up trying to deal with it in a way which makes your situation worse.

When someone’s in debt, we know many people wait a year or more before getting help. At Equity, we want our customers with money worries to recognise the danger signs of a debt problem and start talking about their debt sooner.

Many our customers have expressed the following:

“I was too embarrassed to admit I had debt problems”

“I thought if I ignored the letters and calls the debt would go away”

If this is you, then rest assured you are not alone. Our Money Advice Service has helped many customers deal with their debts by communicating with creditors on their behalf, making affordable agreements and, in some cases, having debts written off.

Our Money Advice Service can come and visit you in the comfort of your own home and help you deal with your financial matters, and also checking if you are claiming all the benefits that you are entitled to.

This is a completely free service, so why wait? Get in touch with our Money Advice Service today.

Tel: 0161 486 7684

E-mail: moneyadvice@equityhousing.co.uk

No matter who you are, the right money advice can make a difference to your life.

3 Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Dealing with Debt10 top tips for managing your debts.

Make the most of your income. Check you’re claiming all the benefits and tax credits that you can. If you’ve lost your job, or you are off work because you’re ill, check if any debts are covered by payment protection Insurance. If so put in a claim immediately or you may lose out.

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Work out a personal budget and show it to your creditors when you contact them. Our Money Advice Service can help you draw up a budget sheet, please contact us on 0161 486 7684. Or, alternatively, use the budget sheet in this booklet.

Get in touch with your creditors straight away and explain the situation. Contact all your creditors not just the ones which are shouting the loudest, if you arrange to pay some and not others you may get into difficulty again.

Tackle your priority debts first, for example debts that would mean losing your home (like rent and mortgage arrears) having your gas or electricity cut off, or possible imprisonment (like council tax and magistrates court fines).

Keep copies of letter and papers you send or receive. Record dates and times of phone calls and the name of the person you speak to.

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4Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Don’t ignore the problem; it won’t go away. The longer you leave it the worse it gets.10

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Borrowing money to pay off your bills or debts is rarely the best option. Be cautious of all companies offering to turn all your loans into one. This usually costs more in the long run. Get advice first from our Money Advice Service.

If you get taken to court, make sure you get advice, and reply to all letters immediately. Give the court all the facts, and always go to court hearings, remember to take your personal budget sheet with you.

Work out reasonable offers to each creditor. Don’t worry if the offer seems small. Creditors prefer a regular small amount than an offer you can’t meet every time.

Don’t give up trying to agree an offer even if the creditors are difficult. Send in what you can afford to show ‘good faith’.

5 Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Rent PaymentsIt is extremely important that if you have fallen behind with your rent payments that you contact us first before you resort to any form of borrowing. We are here to help and will work with you to come to a manageable and affordable arrangement. Most importantly, our arrangements do not accrue any interest charges.

It is in your best interest to contact us immediately if you are struggling with your repayments. For further information please contact our Money Advice Service on 0161 486 7684.

We have listed some options for borrowing, but we can’t stress enough the importance of only borrowing if you really need to.

FurnitureNeed to borrow to purchase furniture? There are now furniture stations around the country who offer good quality, second-hand furniture at an extremely low cost. You need a referral to be able to purchase these goods, so speak to your rent officer or Money Advice Officer who will complete a referral for you.

Borrowing for household goodsIf you need to buy any household goods such as a washer or fridge freezer, TV’s, laptops or furniture, before going to weekly payment stores who can charge as much as 5 times the actual value of the item, we recommend that you visit www.smarterbuys.org.uk. Smarterbuys offer white goods at a

Borrowing MoneyBefore you borrow money from any source, you need to ask yourself: ‘Do I really need to borrow?’. You need to consider what will be the implications if you’re not paying your debts: are you due to be evicted, or be imprisoned for non-payment of fines?

We do realise that there will be occasions when you have no option other than to borrow, but you should seek Money Advice prior to any form of borrowing to check if you can afford the repayments, and to see if there are any further monies you may be entitled to, like claiming benefits. Our Money Advice Officer will also conduct a financial health check, advising you how to budget, and give you tips on how to save.

6Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

reasonable price and also allow you to purchase through your credit union at a small interest repayment.

Alternatively there are grants available from various utility companies such as British Gas and United Utilities. An application can be made to clear your utility arrears and also apply for white goods. You must be willing to wait 6-8 weeks for the application to be processed. Each application is based on its own merit. For further details please contact our Money Advice Officer.

I’m on benefits where can I borrow from?To meet a one off important expenditure such as furniture, clothing or rent in advance you can apply for a budgeting loan. From April 2013, community care grants and crisis loans are replaced by local schemes set up by local authorities. To find out what help is available , if you qualify, and how to apply, check with your local authority.

Why not borrow from the Credit Union? If you are unable to borrow from your bank, then you may consider borrowing from a credit union. They offer low cost loans.

What is a Credit Union?Credit Unions are non-profit making financial co-operatives offering a savings and loan service that exists solely to benefit its members. Credit Unions provide an alternative service to banks, building societies and high interest loan providers. Credit Unions encourage you to save what you can, and borrow only what you can afford to repay.

How do credit unions work?You make regular savings which are used to create a pot of funding. This pot is used to lend money to other members. Once you have been saving a set period of time, you can apply for a loan from the funding pot yourself. This loan includes an interest charge which helps to pay the Credit Unions running costs. Some Credit Unions are even able to pay their members dividends or interest on savings.

If you are interested in any of these services and require further information contact our Money Advice Service on 0161 486 7684.

Watch out for Loan Sharks...Friends and relatives might point you in the direction of a doorstep lender or loan shark.

This is not a good way to borrow money. The agent may come to your home to collect repayments but this convenience can come at a massive cost and their collection methods can be very aggressive!

7 Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Every household benefits from a budget. This will enable you to establish where you can make changes to your expenditure to help save you some money. A budget should include:

All your income All your fixed costs Flexible expenditure

Fixed costs include things like rent or council tax, something that you have to pay and never changes. Some people pay things like mobile phone bills before their rent and, as a result, end up losing their home; make sure rent is your first priority. Flexible expenditure includes things like food, clothes or entertainment - you still need these however you can control what you spend.

Step 1: How much have you got coming in each week/month? This should include all wages, benefits, tax credits and maintenance.

Step 2: Work out all your outgoings, be honest and don’t underestimate.

Step 3: Subtract your total spend from your total income. This will give you an idea on how much you have left.

Step 4: More money coming in than going out? That’s great news - maybe you should consider a savings plan?

More money going out than coming in? It’s time to start cutting. Begin by looking at optional expenses and see what you can afford to go without.

If you need some advice on how you can cut back on spending and possibly increase your income, why not speak to our Money Advice Officer who will work with your budget and see where money could be saved. They will also check to see if you could be entitled to any benefits.

Please call 0800 733 233 for further details and ask to speak to the Money Advice Officer, or call direct on 0161 486 7684.

Budgeting AdviceMaking your money go further.

8Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Money InYour Wage:

Partners Wage:

Your Benefits:

Tax Credits:

Other:

Total in:

Money OutRent:Council Tax:Utility Bills:TV License:Phone Bills:Travel/Car:Insurance:Groceries:Dependents:Loan Repayments:Other:

Total Out:

Available Money:

Budget Sheet

Help with Utility Bills:Most of us are finding that we’re increasingly worse off as prices rise and incomes fail to keep pace. With the latest benefit cuts, many claimants will find it even harder to manage, so any savings that can be made are crucial to stop debt problems building up. We may feel we have already cut back as much as possible, but some people are spending much more on energy and broadband deals than is necessary, and quite considerable savings could be made by renegotiating deals or by switching suppliers. For many households, energy and broadband costs are the highest bills and it is well worth checking to see if you can get a better deal. Some people can save as much as £400 a year by changing tariff or by switching supplier!

Switching your energy provider made easy:If you haven’t changed your gas or electricity provider in the last few years it’s well worth having a go. You can do it over the phone, and our Money Advice Officer can give you some one to one advice. We recommend contacting My Home Energy Switch. Call their free phone number (0800 001 4706) or visit their website (www.myhomeenergyswitch.org.uk). It is helpful if you have an energy bill to hand, or know how much you spend on energy, before you start.

9 Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Bank Accounts Most banks have a basic bank account available to almost all customers. Getting a bank account is easy and makes managing your finances easy too.

In the past, obtaining a bank account has been difficult for people with previous or existing debt problems. However banks must now make a basic bank account available to everyone, including those with a poor credit history.

A basic bank account is a service from a bank or building society which lets you pay in money, get cash out and pay bills. Basic bank accounts don’t allow their users to go overdrawn and you can only spend what you have in your account.

Why do I need a bank account?

You need a bank account if you wish to make automated payments such as paying bills by direct debit, remember paying by direct debit can give you extra discounts on your bills if you use this payment method.

It is easy to budget if you pay your bills by direct debit, and paying by this method allows you to spread payments out on a monthly basis.

Cashing personal cheques can be difficult and expensive without a bank account.

You can have housing benefit and other benefits paid straight into your account. Please note every person in receipt of benefits will be required to have a bank account as this is the only way you will be able to receive your benefits.

To ensure that you don’t miss your rent payments, you can set up astanding order or direct debit to pay Equity Direct. If you wish to makepayments via these methods please contact Equity on 0800 733 233 forfurther details.

We recommend the Co-Op cashminder account for our customers. The cashminder is also suitable for customers who are not eligible for current accounts or who have had financial difficulties.

10Make sure your rent payments always come first, if you have any money problems contact Equity’s Money Advice Service

Useful Contacts

National DebtlineFor tailored self-help advice0808 808 4000www.nationaldebtline.co.uk

My money stepsFor tailored advicewww.mymoneysteps.org

Citizen Advice BureauOnline and face to face help, including fact sheets and template letterswww.adviceguide.org.uk

Directgov-Stop Loan SharksReport a loan shark in confidence, or for help and advice0300 555 2222 or website for regional phone numberswww.direct.gov.uk/stoplonsharks

Experian LtdTo get your credit ratingCustomer Support CentrePO Box 1135Warrington WA55 1EP0844 481 8000

Equifax plcCredit file advice centrePO Box 1140Bradford BD1 5US0844 335 0550www.equifax.co.uk

Call credit LtdConsumer Services TeamPO Box 491Leeds LS3 1WZ0870 060 1414www.callcredit.co.uk

Equity Housing Group, Armitt House, Monmouth Road, Cheadle Hulme, Cheadle, Stockport, Cheshire, SK8 7EFTel: 0161 486 9911 Fax: 0161 485 5858

Customer Services Contact Centre: 0800 733 233Emial: info@equityhousing.co.uk www.equityhousing.co.uk