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What can we do for you?

Many people have problems meeting their debts. Try not to worry - you do not have to deal with it on your own as there are advisers in your area to help. Independent, impartial and confidential money advice is out there for you and is provided free from Fife Council's Money Advice Team.

If you contact us, we will look at all your debts. We will also help you decide whether you are able to make any payments to your creditors, and, if so, which creditor should be paid first. We will also help you by negotiating with your creditors and can deal with emergencies such as:

• Gas or electric being disconnected.
• Wages being arrested.

We will also look at how your income can be maximised. We may suggest that you could try applying for state benefits. For example:

• Income support.
• Tax credits.
• Council tax, housing benefits or rebates.

A Money Advice Officer will help you look at your overall debt situation and help you cope better. They will not make decisions for you, but will help by giving advice and information so that you make informed choices about your situation.

We have the backing of the Trading Standards enforcement officers who are able to assist in checking agreements, contracts and early settlement rebates. They are also able to report any illegal lending practices to the Office of Fair Trading.

We will help with:

• Checking your benefit entitlement.
• Applications for benefits.
• Advice on court action including threatened evictions and repossessions.
• Negotiating with creditors.
• Advice on insolvency issues such as bankruptcy and trust deeds.
• Checking credit agreements to make sure they are legal.
• Making applications for grants.
• Arranging assistance from other relevant agencies.
• Providing advice about Debt Management Programmes.

Advice on avoiding problems

If you find you are getting into difficulties, there are some points you should be aware of. You should also consider all of the options available to you; your adviser will be able to give you details on the best option for you.

You should:

• Check to see if debts are covered by insurance if you are paid off or cannot work through illness.
• Get in touch with creditors straight away if you run into difficulties.
• Seek advice if you feel that you can't cope on your own.
• Tackle priority debts first - this could avoid homelessness, wage arrestments or attachments.
• Offer even the smallest amount to your creditors to show that you intend to repay the debts.
• Let creditors know if you cannot make an agreed payment. As long as they are kept informed, they will usually allow you time.
• Return court documents promptly giving all the facts.
• Keep records and copies of all letters you send or receive.

You should not:

• Ignore the problem - the longer you wait, the worse it gets.
• Borrow more money to pay off your debts without taking advice first.
• Give up trying to negotiate with creditors even if they seem difficult at first.

Ways to Resolve Your Problems

Voluntary Debt Payment Programme

This programme allows you to pay off all your debts over an extended period of time with agreement from your creditors. You need to be aware of a couple of things when entering into a reduced payment programme. This is an informal arrangement with your creditors who can, at any time, decide they no longer wish to accept payments you offer. Normally they will continue to accept payments as long as your circumstances don’t change. However, they will not always agree to freeze interest charges, and in some instances may also apply an administration charge if the account is not up to date. We can help you with setting up a reduced payment programme.

Statutory Debt Arrangement Scheme

This is a legal procedure which helps and protects debtors who owe money to several creditors and who can afford to make payments on a regular basis. Depending on the levels of your debt and how long it takes to pay, we may be able to help you apply for a debt payment programme. If you keep to the agreed payments, your creditors cannot carry out enforcement action against you.

Trust Deeds

If you feel that you need a more formal arrangement or if your debts are likely to take several years to clear, you may wish to consider signing a Trust Deed. However, this is not usually advisable if you own your home and can only be considered if you have available income or assets that can be sold (insurance policies, valuables). You should be aware that if enough creditors object to the Trust Deed, you could end up being declared bankrupt. You are usually discharged from the Trust Deed after three years and the payments you have made during that time are paid on a pro-rata basis to your creditors in full and final settlement of the debts. Creditors cannot take action against you during or after the three years. We can advise you on this option and introduce you to an Insolvency Practitioner for further advice.

Bankruptcy

This should usually be considered as a last resort not least because it can have the most damaging effect on your credit rating (it can be affected for up to 15 years). It is not usually advisable if you own your home. It can be an option if you owe more than £1500 and one of your creditors has served a Charge for Payment against you (or in the case of Council Tax for example, an attachment has been attempted). You may be required to pay money to your Trustee for the period of your bankruptcy (usually three years). Assets are usually sold and all monies held by the Trustee (insurance policies, valuables, cars etc). A recent change to the law has enabled debtors on low income to apply for their own bankruptcy without the need for a Charge for Payment. We can advise you on these processes and help you to apply.

Consolidation Loan (Secured/Unsecured)

If you have available income and you contact us before your debts get out of hand, it may be possible to apply to a bank or finance company to borrow enough money to repay all of your debts. The advantage is that you will then only have one creditor to repay. Sometimes banks ask that this type of loan be secured on your property or it can work out more expensive, so it is always a good idea to take advice before making this your preferred option. This usually involves additional interest charges.

Moratoriums and Write Offs

Some creditors may be sympathetic to debtors’ circumstances in some instances and may agree to temporary respite or even to write off debts. Your Money Advice Officer will be able to discuss this with you.

Different Ways To Pay Your Creditors

There are various methods of paying your bills; you should look at them all and decide which is easiest and best for you. For example, if you are paid weekly, you would be best advised to pay your bills weekly to avoid hefty payments every month.

Council Tax and Fife Council Tenants Rent

• Direct debit – if you have a bank or building society account. If you would like to pay by direct debit call 08451 55 11 44 or 55 11 55.
• Standing order - you need to complete a new form and take it to your bank every time there is a change to your payment. New standing order forms are enclosed with your council tax bill.
• By phone – pay by debit or credit card by calling 08451 55 00 55 and follow the automated instructions. There is a 1.25% charge for credit card payments.
• Internet payments – use your debit card. Go to www.fifedirect.org.uk/pay and follow the online instructions. There is a 1.25% charge for credit card payments.
• By post – write your payment reference or account number on the reverse of the cheque. Cross cheques and make them payable to Fife Council.
• Using Post Office branches and businesses with the PayPoint service. Please take your payment card or barcoded council bill with you.

Go to www.fifedirect.org.uk/pay for more detailed instructions.

Fuel

• As the bills come in.
• Weekly/monthly budget scheme (by payment book, direct debit or standing order).
• By payment card from your fuel supplier.
• Through a payment meter, buying power cards for electricity or an amount of gas on your quantum meter card.
• Paypoint: Buy gas using your gas payment card at local outlets.
• In some cases, deductions can be made from your Income Support/Income based Jobseekers Allowance.

For advice on energy efficiency in the home, visit the Fife Direct website on www.fifedirect.org.uk.

Telephone

• As the bill comes in.
• Monthly payment plan.
• BT payment card at PayPoints in local outlets.
• Online at www.bt.com/payments.

TV licence

• TV Licensing savings card at PayPoint outlets or by phone.
• By direct debit (you need to have a bank or building society account that accepts direct debits).
• By credit or debit card.
• Pay online at www.tvlicensing.co.uk.
• At any PayPoint outlet by cash or debit card.
• By post, write a cheque for the full fee made payable to ‘TV Licensing’ with your name, address and licence number on the back.
• Use the Cash Payment Plan (see below).

What is Cash Payment Plan?

It is a payment scheme open to everyone applying for a colour television licence. It allows you to spread the cost of your licence fee by making regular weekly or fortnightly payments by cash, credit or debit card. Once you've joined the Cash Payment Plan, you’ll be sent a payment card and payment schedule showing you exactly how much you should pay and when. You can then begin to make these payments at any one of over 16,000 PayPoint outlets nationwide. PayPoint outlets accept cash and debit card payments. Alternatively you can pay over the phone by credit or debit card. Initially, payments are made on a weekly basis, enabling customers to pay for their first licence over six months in 26 weekly payments. After this, customers can move to fortnightly payments towards their next licence.

Application packs and further information on the Cash Payment Plan can be obtained by calling the TV Licensing customer helpline on 0845 601 5526 or by visiting their website at www.tvlicensing.co.uk/waystopay.

Other Creditors

• By weekly/monthly payment books.
• By standing order/direct debit from your bank.
• By cheque/postal order.
• Sometimes via collectors coming to your door.
• At the creditor's local shop/branch.
• Using the Paylink Scheme (You make one weekly or monthly payment, Paylink pays your creditors from that).
• Paypoint - pay using your card at local outlets.

Money Saving Tips

Grocery shopping

• Don't go grocery shopping when you're hungry.
• Plan your weekly menu.
• Make a list and stick to it.
• Use 'money-off' coupons from papers.
• Use supermarket points cards.
• Shop late at night for marked down prices.
• Buy in bulk (three for price of two etc) - share costs with a friend.
• Think twice about special offers - do you really need them?
• Check adverts for price comparisons.

Fuel/utilities

• Learn how to read your meter.
• Take weekly readings and work out what you use.
• Think before using power (can you hang laundry up to dry rather than use the tumble drier).
• Save up laundry/dishes until load is full.
• Only fill up your kettle to the amount you need.
• Use the telephone only when necessary.
• If you have a large family, think about having a pin number on the phone to limit use.

Other Ideas

• Check to make sure you are not over insured.
• Check your tax code.
• Shop around for credit.
• Pay bills according to your income (weekly, monthly etc).
• Check your budget regularly to make sure you are living within your means.
• Try to save for holidays rather than taking on credit to pay for them.
• Use two bank accounts (an income account and a bills account).
• Buy Christmas saving stamps throughout the year.

Advice for students

As a student, you will have extra difficulties in that you normally will not even have enough money to live on. We have compiled some notes on benefits and budgeting tips for students.

Income Support

• Most full-time students are disqualified from claiming this benefit until the course ends. This includes the long vacation periods.
• Disabled students are entitled to disabled students allowance.
• Lone parents can claim income support.
• Pensioners who are students can claim Pension Credits.
• Refugees learning English and certain other people from abroad may be eligible for income support during term time and all vacations (if they meet the eligibility rules).
• Student couples with a child can get income support during the long vacation.
• If you study part-time you can claim income support.

Housing Benefit

• Most full-time students are disqualified from claiming this until the course ends.
• If you are one of a couple and your partner is not a student he/she can apply for this benefit.
• Student couples who have a child will be eligible for this benefit throughout the course.
• If you are entitled to income support, you should also be entitled to claim housing benefit. Disabled students for deafness can also claim this benefit (but not for any other disability).
• Lone parents will be eligible for this benefit.
• Pensioners may be eligible for this benefit.

Council Tax

• Full-time students are usually exempt from paying Council Tax.
• Council Tax payers may be able to claim a 25% reduction if the only other adult living in the house is a student.

Job Seekers Allowance

• Students attending a full-time course are normally excluded from this benefit until you abandon it or are dismissed from it.
• If you are 25 years or over and have been on JSA for at least 2 years you may be able to go on a full-time employment related course of a year or less and stay on JSA.

Incapacity Benefit and Severe Disablement Allowance.

• ICB and SDA are payable during term time as well as vacations.
• To qualify you must be accepted as incapable of work via the "all work" test.

Disability Living Allowance

• This can be paid over and above any grant, loan or Income Support.
• If your college provides care and assistance for you, the college authorities may claim some or all of the DLA Care Component from you towards their costs. Otherwise, you can use it to benefit your needs.

Discretionary Payments

• If your course is not a designated course or you don't qualify for financial support, you can ask your LEA or SAAS for help. These are difficult to get and amounts vary.

Career Development Loans

• Offered by High Street banks, amounts vary from £300 to £8000.

Access and Hardship Funds

• Administered by Universities to provide emergency help to full-time and part-time students. Colleges may also have their own hardship funds.

Charities and Trusts

• May top-up your income or pay for a special need providing you fit into their criteria.

Potential Employers

• May provide sponsorship if course relevant to employers needs.

Advice for Visually Impaired Students

The Royal National Institute for the Blind's website provides a wide range of advice and information for students. This can be found at www.rnib.org.uk/student.

Money Advice Partnership

Citizens Advice & Rights Fife (CARF) and Fife Council's Money Advice Team now form part of the Money Advice Partnership and are responsible for delivering the money advice strategy in Fife.

A new leaflet is available to help consumers in debt and can be ordered here.

Our Debt Action Pack

Our Debt Action Pack was originally launched in January 2000. Since its launch, we have distributed over 5000 packs. The pack, which was revised in 2005, gives advice on how our Service can help you deal with your debts. If you are a Fife resident you can order a copy here. Alternatively, you can telephone our Money Advice Service on 01592 583123.

Advice For Small Businesses and Self Employed Customers

Setting up your own business can be very rewarding however maintaining a successful business can be very difficult in these competitive times. There is so much to think about when considering starting up on your own or with a partner (skills, funding, premises, promotion etc). Most importantly, a comprehensive business plan is required outlining your objectives, projected costs and income etc. It is crucial to seek professional advice prior to entering into any venture; this can make the difference between success and failure.

Below is a list of suggested websites where advice can be sought on starting up a small business (please note that this list is not exhaustive and we are not recommending any of these sites, merely pointing out some of those available).

www.smallbusiness.co.uk
www.hse.gov.uk/smallbusinesses
www.startups.co.uk
www.bytestart.co.uk
www.barclays.co.uk
www.businesslink.gov.uk

If you run into difficulties

If you have already been trading either on your own or with a partner and your business has run into difficulties, you might benefit from professional advice either to look at ways to resolve your difficulties or to wind up your business in the most profitable manner. Listed below are some companies who can offer you a free, diagnostic interview to discuss the best way forward for your company.

These companies may be able to assist you with budgeting for VAT and tax, business loans, RSA and local grants, financial planning, reorganisation etc.

Glen Drummond Partnership - 01506 498156 (Eric Nisbet)
askMAC – 01592 760204 (Christine Convy)
French Duncan - 08700 848898 (Eileen Blackburn)
Pannell Kerr Foster - 0141 429 5900 (Stephen Hearns)
Henderson Loggie - 01382 200055 (Shona Maxwell)

You should be offered free initial advice if you contact them. If you have any problems, please contact Fife Council's Money Advice Team.

Business Debtline is a free, independent debt advice service to the self employed and small businesses. They offer a telephone based 'self-help' service supported by free information sent out to callers. They can be contacted on 0800 197 6026 or visit www.bdl.org.uk.

Online Client Appraisal Form

If you are having financial difficulties and would like our help, you can complete our online appraisal form here. The form will be passed to one of our money advice officers who will then contact you to arrange an appointment to meet with you to go over the options you might take to resolve your difficulties.

Remember, all information is treated in the strictest confidence; our service is free and all advice given is impartial. If there are specific times and/or ways to contact you, please use the box at the end of the form to let us know.

Before You Buy - Money and Credit

Consumer Direct offer you advice on some of the steps to consider before borrowing.

Guidance notes and leaflets