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Dealing with your debts
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It is not a crime to owe money, you won’t go to
prison if you can’t pay
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Don’t be scared of
court action – it can help solve your problem – you do have rights
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It is never too
late to tackle your debts
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Lots of people
solve their problems by following the simple steps in this booklet
REMEMBER THESE BASIC RULES
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Tackle your priority debts first
– those debts that mean you can lose your home or
have your electricity or gas cut off. There are still a few debts that if you can pay
but won’t you can go to prison for – taxes, Council Tax, maintenance and Magistrates Court fines. You can’t
go to prison for normal debts like rent arrears, credit, etc
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Write down your income and expenses
– this booklet shows you how to do this
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Work out what you can afford to offer
– don’t worry if it doesn’t seem much.
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Always attend court hearings and return court papers
– more details are inside.
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Do not borrow money to clear debts
– this usually makes things worse
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Always get free, independent advice if anything is unclear
– with our help, you can regain control
of your finances.
WORK OUT YOUR PERSONAL BUDGET
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Why do I need to do this? Because it helps you to:
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See how much money is coming into your household and how
much is going out.
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Work out offers to the people you owe money to (creditors)
which you can afford.
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Show creditors how much you can afford to pay.
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When completing the
budget sheet use either weekly or
monthly figures, whichever suits you. Do not mix
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the two.
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Above all else be honest when you complete your personal
budget.
There are eight stages to this process:
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