DEBT PROBLEMS

 
If you anticipate debt or have a debt problem you may find yourself working your way into a panic.
 

Therefore, it is vital to regularly run a financial 'health check' on your money and to budget as much as you can.  Most importantly, seek advice quickly from the relevant organisations if things go wrong or you simply need a few tips.

There is nothing worse than ignoring the problem and letting it reach crisis stage before you are forced to seek advice for things such as imminent eviction from your house, disconnection of utility services or receiving a default notice or court summons for non-payment of bills.  Remember, most debts can be sorted out if you face up to them and seek advice quickly. There are a number of bodies that can help such as the Advice Unit, Citizens Advice Bureau, Welfare Rights Service and other specialist agencies.

Top Tips For Dealing With Debt

Don't bin or put aside those brown envelopes. Open your post!

It is less stressful and time consuming if you face up to the problem sooner instead of ignoring it or panicking until you are forced to face up to the reality of your difficulties.

Seek advice and assistance from the Advice Unit or Citizens Advice Bureau who will be able to help you resolve the issues. You can also be referred to the counselling service in the Student Centre if required.

Don't go over your overdraft without authorising an extension first. Otherwise you may be sanctioned by the bank (see above section).

You must deal with your priority debts first such as rent, gas, electric, tuition fees, council tax, water because you can be evicted or disconnected but stores will have to take you to court first.

Contact all your creditors (the people to whom you owe money) immediately and explain your difficulties, in person, by phone or letter or ask the Advice Unit to do this for you. Creditors will be much more conciliatory if you get in touch with them and are seen to be making an effort sort out your problems. Otherwise, you could be deemed as someone who won't pay as opposed to can't pay

Only offer to repay what you can realistically afford. If you are unsure about what you should be offering to creditors. Contact the Advice Unit for help.

All creditors now request to see a budget sheet or financial statement as evidence of your difficulties and you can use this to make an offer of payment. The Advice Unit can draw up a financial statement and consult with your creditors on your behalf.

If the first person you speak to appears uncooperative then ask to speak to a senior member of staff who may agree with your payment plan.

Don't give up trying to arrange an agreement even if creditors are difficult.

Always keep copies of any correspondence you send or receive and make a note of every telephone call.

Act quickly if you are sent a default notice or court summons. DO NOT IGNORE IT! As judgement maybe given against you.  Contact the Advice Unit immediately.

Do not suffer in silence.

BUDGETING

Maximise your income! Ensure you are receiving everything you are entitled to then contact the Advice Unit who can calculate and assess your needs on01204 900850.

 
Obtain part-time work especially if you are in your first and second year of studies and are single.

Work out your income on a weekly basis, this is much easier to keep track of.

Calculate your spending and be honest! How much do you really spend on topping up your mobile phone, alcohol, cigarettes, 'treats' and entertainment?

Always start with your priority bills such as rent, utility bills, tuition fees, study materials and food. Never use your loan cheque to clear your credit /store/ catalogue accounts and mobile phone bills ahead of priority bills! The sanctions for non-payment of priority is much more serious and costly.

If you are in Halls of Residence, pay this off as soon as you receive your loan cheque. If you have taken out an emergency loan, you must pay this off and ensure you pay your tuition fees as soon as possible after you enrol. This way you know your priority bills are paid and you will not accrue rent arrears or face sanctions from the University.

Allocate your remaining income to your secondary expenditure.

Keep your spending under control and minimise impulsive spending.

Keep a record of your weekly expenditure.

Regularly run 'financial checks' on yourself.

Use the Vacation times such as Christmas, Easter and the Summer break to work full time and plan the academic year ahead.

How to make your money last longer

Buy on a cash only basis. If you can't afford it try saving up for it (as much as possible) instead of turning to your 'plastic friends'.

Try to be energy efficient by switching your gas and electricity supply to a cheaper supplier. You may attract a discount and some suppliers have removed the standing charge.

Paying bills by direct debit can attract a discount and means your bills are being paid regularly.

If you have a pay as you go mobile phone, keep your spending to a minimum or if you have a contract phone shop around for the best deal on free minutes and text messages.

Make calls to family and friends on your landline at the weekend when its cheaper.

Have a 'kitty' for the household expenditure.

Cook and shop together where possible which can be more enjoyable than a microwaveable meal for one.

Avoid pre-packed or ready made food as you're paying for expensive labour.

Don't go shopping when you're hungry.

Buy own brands or economy foods from the supermarket and try shopping at the end of the day when grocery and bakery items are reduced.

If you eat on campus, try the Students' Union 'Venue' which offers good value for money on hot meals, burgers, sandwiches, snacks and drinks in a modern comfortable
environment.

Buy clothes only during the sales.

Plan ahead and be realistic about your expenditure such as return journeys home and deposits for houses.

Book journeys well in advance to benefit from promotions such as virgin value schemes.

Always read and keep your bank statements!

Save some money for emergencies if you need to return home unexpectedly or your loan cheque is late.

Choose your bank carefully. Never open more than one account or open several accounts with different banks. Not only will you run into severe debt but also failure to
repay will result in a poor credit rating and will seriously jeopardise your studies.

Take out only what cash you can afford for the night and leave your cash card safely at home.

Use the library instead of buying all the books on the reading list.

Visit the Students' Union bar instead of going into town centre which can turn into an expensive night out.

Join sporting and non-sporting clubs and societies in the Students' Union which can save on expensive membership fees and usage of facilities.
 
Most importantly, obtain a budget planner from the Advice Unit and seek budgeting advice. It may seem like the most boring job in the world but a little time spent on budgeting will greatly enhance your student experience at The University of Bolton.

THE BASIC MESSAGE!

Don't be lulled into a false sense of security at the beginning of each term when you receive your student loan and any grant package.
 
You have to make this money last over the term and try not to guess at what you are spending but keep a small record of your expenditure.

Don't alienate yourself from your parents or family in fear. In our experience they are often the last to know if a student is in difficulty but are the first to help if they can.

Most importantly, do not be afraid or hesitant to seek our help when things go wrong or do not turn out as you expected. The important thing is to recognise and acknowledge there is a problem that needs attention.

At The Advice Unit We Can:

Talk to the people you owe money to.

Agree future payments that you can afford.

Help sort out your priority debts from your secondary ones and list them in order of priority.

Help organise your money in the future.

Help you to complete the University Access to Learning Fund application forms and any subsequent appeals.

Help you to complete your LEA and benefit forms.

Calculate your benefit entitlement.

Help you appeal to the Benefits Agency.

Refer and signpost you to relevant agencies as appropriate quickly if we are unable to deal with your query.