Do You Worry About DEBT?

1. ‘No Worries’ click to find out more. Do You Worry About DEBT?

2. If you know what you want to look at just click on the topic. • Credit cards • Loans • Bills • Rent Arrears • Writing Off Debt • Parking Tickets • Student Debt • Help with managing finances • Bailiffs • Credit Rating • Contact Details • Useful Links Contents Select the topic you want to read about. Click here to exit and return to desktop.

3. We do NOT give advice on getting credit cards but we can help if you are struggling to make your monthly payment. Credit Cards are classed as NON-PRIORITY debt. This does not mean that you do not have to pay off the balance it simply means the enforcement options open to the creditorare less than in PRIORITY debts. Credit Cards If you are struggling to make your monthly payments to your credit card company the first rule is not to panic. You should contact the company and tell then that you are struggling but that you are taking steps to make sure you can continue to pay. You may then wish to contact us and we will assist you in drawing up a budget helping you prioritise your finances so you do not have problems in the future. Under no circumstances just ignore the debt it will only get worse! To return to the contents page click here. To exit and return to the desktop click here.

4. Student Loans have different rules to other types of loan and are not considered on this slide, click here if you want to know more on student loans Loans can be divided into two groups, secured and unsecured. Secured loans means the LENDERhas agreed to provide money on the basis that if repayment(s) are not made then they can claim property which was used as security. Mortgages are types of secured loan. Unsecured loans mean no property is attached to the loan so if repayment(s) are not made your home is not in danger of being repossessed Loans If you have a secured loan this is a PRIORITYdebt and as such you should make every effort to make sure that it is paid every month even if that is at the expense of other NON-PRIORITYdebt. If you require help in budgeting then contact us and we will help you, we can also help you negotiate reduced repayments with your creditors. To return to the contents page click here. To exit and return to the desktop click here.

5. Bills often cause many headaches as you can have so many and not know which ones you have to pay first and they all contact you and you need to get food and… it’s ok, breathe. Paying your bills on time and every month can be difficult but if you take the time to make a realistic budget then problems can be avoided. You should make sure you are aware of what are your PRIORITYand NON-PRIORITYobligations are and consider where you can make savings on things such as, phone bills, broadband packages, weekly shopping bills, utility bills etc check out websites like moneysavingexpert.com for the latest deals. If you are struggling to pay your bills every month please contact us and we will help you produce a budget or in extreme cases we made be able to direct you to other sources of financial help such as the University Hardship Fund or if struggling with utility bills some companies have trusts that you may be able to apply to. Bills To return to the contents page click here. To exit and return to the desktop click here.

6. Rent arrears are extremely serious and they should be treated as a PRIORITYas failure to pay your rent can ultimately result in being evicted from the property. Once you receive your means of financing study, ie student loan or parental contribution etc, you should make sure that you have taken into account your rent and reserve an amount purely for this purpose. Rent arrears can also accumulate in halls of residence as it is contract between yourself and the University’s accommodation office, if you fail to pay then you risk being told to leave. Rent Arrears If you are in rent arrears you may need to consider doing a budget to see how and when you can pay these off and prevent the situation rising again. You should also contact the landlord/agent and make them aware that you are taking action to pay off your arrears. To return to the contents page click here. To exit and return to the desktop click here.

7. You may have heard the adverts saying that ‘using little known Government legislation we can clear your debts’. There are ways of clearing your debt but they are not always advisable and in most cases they should only be used in the more extreme cases of debt where there is no other option. Two such options, in theory, are bankruptcy and debt relief orders but these can have serious implications on your credit reference file and affect your ability to get a mortgage and restrict your career options. In most cases trying to find ways of paying the debt off in a manageable way is the best course of action. If you are struggling with debt then come and see us and we will consider all options with you. Write Off Debt To return to the contents page click here. To exit and return to the desktop click here.

8. The first thing you must know about parking tickets is that they are not all the same and they have different rules depending on which type you get. The two types depend on who issues the ticket whether it is a private company or whether it is a public body such as the council or Police. If you receive a parking ticket from a private company then they are claiming there has been a breach of contract between themselves and you, it is not a fine. The problem with private companies is there are no set regulations governing their behaviour therefore charges can vary and ways of challenging the issue of tickets can vary from company to company. There are plenty of anecdotal websites with ways of challenging tickets which you can look at but if you want further advice then come and see us. Parking Tickets Parking tickets issued by public bodies can be challenged through the council or police individually, it is always advisable to challenge quickly as that stops them enforcing payment whilst it is investigated. More information can be found here. To return to the contents page click here. To exit and return to the desktop click here.

9. Student debt is common as most people need to get a loan to help them in their study, this loan usually comes from Student Finance England (if you are resident elsewhere you will have a different system and you should contact us for further advice). Money received through a student loan is not the same as a loan you get from a bank and it has different rules surrounding its repayment. Your student loan is income contingent which means you only start to repay once you are earning more than a certain amount (currently £15,000). It is also deducted at source direct from your pay and will cease being paid should your income fall below this threshold. Student Debt The rules regarding student finance are constantly changing and you should you require further information on student finance please contact us and keep checking the website as any updates will be uploaded as soon as possible. To return to the contents page click here. To exit and return to the desktop click here.

10. Managing your money can be difficult as your monthly bills can mount up and they can all come at once, but there are steps you can take to make managing money easier. Managing Finances • Produce a budget showing your income and expenditure but be honest with your figures as your budget will only be as good as the information you put in. • Prioritise your payments into PRIORITYand NON-PRIORITYand make sure you can cover your priorities first • Look to maximise your income, if you think you may be entitled to benefits or further help through student loan etc then seek advice. • See if you can reduce your expenditure by looking at sites like moneysavingexpert.com and keep an eye out for the YSJ Money Doctors who run events throughout the year giving you hints and tips on how to save money whilst be a student and beyond. Click on the Money Doctors Logo to see the webpage. To return to the contents page click here. To exit and return to the desktop click here.

11. The rules surrounding bailiffs can become complicated as they have different powers depending upon the debt they are enforcing. Bailiffs act in relation to debts that remain unpaid and act after court action has been taken. Bailiffs take property from the debtor and sell it to then settle the debt and pay the creditor. Except for in certain circumstances when a bailiff visits your property for the first they do not have the right to enter your property using force. Bailiffs must get what is called peaceable entry which means they are either invited into the property or they can enter the property without force through an open (or unlocked) door or window. Bailiffs Bailiffs should not be confused with debt collectors. Debt collectors do not have the same powers as bailiffs, both in terms of entry and seizure of property. Debt collectors work to try and get the money owed before court, a debt collector should not pretend that they have the same powers as a bailiff in an attempt to threaten you to pay. To return to the contents page click here. To exit and return to the desktop click here.

12. When you apply for credit, some lenders use credit scoring/rating to help them decide if you are likely to repay. To work out your credit score, lenders may look at your application form and give points to some of the information on it, such as your age, your job and if you own your own home. Lenders may also give points to some of the information on your credit reference file. If you go into debt this can feature on your credit reference file and as such it can affect your credit score/rating. This increases the risk to the lender therefore they may be less inclined to offer credit to you in the future or it could affect the terms on which you are offered credit. Defaults in payments of credit accounts can show on your credit reference file and can be there for six years. Your Student Loan does not affect your credit rating nor does it affect your ability to obtain a mortage. Credit Rating To return to the contents page click here. To exit and return to the desktop click here.

13. If you have any issues surrounding debt or student finance then please feel free to contact us using any of the methods below. Welfare Advice Team Phone: 01904 87 6377/6400 E-mail: welfare@yorksj.ac.uk Student Funding Advice Team Phone: 01904 87 6939/6536 E-Mail: money@yorksj.ac.uk You can also make an appointment to see any member of the teams via the Student Advice Team desk in Holgate opposite the main reception. Contact Us For further information on our work and to view other interactive presentations visit our website. To return to the contents page click here. To exit and return to the desktop click here.

14. If you are struggling with debt then here are a few links that you might find useful: Useful Links • Student Budget Planner • Community Legal Advice • Credit Action Money Manual for Students • Money Saving Expert • Advice Guide from Citizens Advice • NUS Extra • Voucher Codes • Our Money Doctors Site • YorkCard To return to the contents page click here. To exit and return to the desktop click here.

15. Below are definitions of some of the terms you may not be familiar with relating to debt. Bankruptcy: Declaring yourself bankrupt mean you cannot afford to pay all of your creditors and bankruptcy gives a way of cancelling the debt after a period of one year (usually). It can be costly declaring bankruptcy and your home and any possessions of worth are at risk. You should always seek other options before bankruptcy. Creditor: A creditor is the person who is owed money, this may be the credit card company or bank who provided a loan for example Debtor: The debtor is the person who owes the money to the creditor. Debt Relief Order: This is similar to bankruptcy in that it can clear your debts but it has extremely limited criteria so it is not an option in most cases Glossary Can’t find the word you are looking for? Click to go to the next page of the glossary. To return to the contents page click here. To exit and return to the desktop click here.

16. Evicted: Evicted means you are forced out of your house because you have failed to pay the rent. • Expenditure: This is money that you spend over a period of time (ie a month) and covers things like rent and shopping. • Income: This is the amount of money you receive over the same period, this can include student loan, parental contribution or wages. • Lender: This is the person who provides money to another who is then a borrower. • Non-priority debts: Non-priority debts are things such as: credit card or store card arrears, catalogue debts, bank overdrafts and loans, • personal loans with finance companies (unsecured), money borrowed from friends or family. • Priority debts: Priority payments are things such as: mortgage or rent, utility bills, any other secured loans (this means they are attached to a property which would be at risk should payments be missed) Council Tax Glossary 2 To return to the contents page click here. To exit and return to the desktop click here.