Making money online - product reviews

With the recent surge in online shopping, it's becoming increasingly likely that a customer will never actually see a product in the flesh before making a purchase. As a result, more and more people are turning to independent product reviews to help them to make the right buying choices.

Product reviews are big business, and they can have enormous impact on a product's success. 

The rules of shopping

The high-street and the internet are packed with temptations and devious psychological tricks in an attempt to part you from your hard earned cash. The rules of shopping are there to make you stop and ask questions before you make purchases on an impulse.


The Rules
Whenever you're shopping and you see something that you want to buy, ask yourself the following questions:

Can I afford it?

Do I need it? / Will I use it?

Is it value for money?

When you ask yourself whether or not you can afford a particular purchase, you should be thinking about your necessary expenses like food shopping, bill payments, and any loan/credit card repayments. If you need to borrow money to do this, the answer is: NO!

When you ask yourself whether you need it or are likely to use it, try to be realistic. The item might not work as well as it claims, or might not last as long as you expect it to. Also think about what else you could afford to do with the same amount of money. There are also specific considerations dependant on the kind of product; for example, if you're attempting to body-build or lose weight, spending a lot on clothes that might not fit you for long is not a good idea. 

When considering whether something is value for money, think about similar items offered by competitors and what advantages are offered over them. Try to be objective and don't just look at the label. Designer clothing is particularly notorious for being poor value for money, because the quality is often (though not always) no better than much cheaper generic brands - even designer products are sometimes made in sweat-shops!

If your answer to ANY of those questions is 'No', walk away and don't look back. Congratulations, you've avoided an impulse buy.

If you answered 'Yes' to both of those questions, ask yourself:

Can I get it cheaper somewhere else?

Is it reasonable to buy a cheaper make / brand?

Can I get a discount?

What did other buyers think?

Where possible, you should price compare before committing to buy. You can find out how to do this by looking at our how to price compare article.

When considering whether it is reasonable to buy a cheaper make or brand, it's important to take an objective look at the advantages and disadvantages of one product over another. Try not to be swayed by superficial qualities if it is actually the function that is most important. For more information on cheaper brands, take a look at our going down a shelf article.

It is always worth asking yourself whether you can get a discount. The approach will obviously vary depending on the type of product you're looking to buy. 

• For grocery items, there may be coupons available either online or in supermarket magazines.
• For most other items there may be exclusive online prices available that are cheaper than those found in stores.
• For fairly expensive items (over £50), it is not unreasonable to attempt to haggle for a lower price. However, this can only be done face to face or over the telephone and does not typically apply to online purchases (with the exception of private sales).  Never be afraid to haggle: the worst they can do is say 'no'.
  

Finally, it's always worth taking a look at what other buyers thought of the product you're considering. There are an increasing number of forums and websites where customers can  leave reviews detailing their experiences with a product: from cans of soup to luxury holidays, you can find reviews on just about anything. These reviews vary in quality and it will usually be quite easy to see which you should be paying attention to and which should be brushed aside. Of course, not everyone has the same experience with a particular product, but be on the lookout for patterns such as common defects.

Conclusion

Think before you buy and don't be tricked into spending more money than you want or need to. Consider all the other options and find out what experiences other buyers have had. If you do decide to make the purchase, consider whether you can get it somewhere else or if you're entitled to a discount.

Penny's Bright Ideas #1

Today Pennysitter introduces Penny's Bright Ideas. These are quick and easy money-saving ideas that didn't have anywhere else to go, but which Penny was keen to share.

The penny jar

After a hard day of shopping your coffers are likely loaded with copper and silver that will wear their way through even the toughest pockets and make you sound prematurely Christmassy as you jingle merrily along.

These coins, once unloaded, have a nasty habit of disappearing down every nook and cranny, so it can be useful to have a jar or other container that you can dump your coins into without really having to worry about them.


What can I use?
Some people use jars, some use empty giant whiskey bottles (no, making a penny jar is not a good excuse for buying one!), some use traditional piggy banks or tin cans. It doesn't really matter what you use as long as it's big enough to hold all the shrapnel that your favourite stores so enjoy landing you with.

Some people like to use containers that they can't open until it's full like a ceramic piggy-bank that must be smashed open or a tin can that requires a tin-opener. This can be a useful way of saving up for something specific, but it also means that your cash could be left sitting at home when it could be in the bank gaining interest - however slight.


What to do when it's full
Finding the penny-jar full can be both exciting and daunting. Chances are there could be upwards of fifty pounds in there, but the prospect of counting and bagging it it all up to find out can hardly seem worth it. There are, however, other methods.

The company Coinstar offer change counting machines that are easy to use and are usually placed in convenient places like supermarkets. However, there is a catch: Coinstar deducts around 8% for the convenience: that's eight pence from every pound; eighty pence from every tenner, and eight pounds for every hundred.

Some branches of the HSBC offer coin-sorting machines to account holders. The machines deposit the funds into the elected account without any deduction. After that is done, there's nothing to stop you from deducting your money straight away. Of course, this is only a convenient option if your local HSBC carries a coin sorting machine.

Alternatively, you could purchase a coin sorting machine of your own. Check out Penny's Shop to see some of the models available. All banks offer coin bags free of charge so, once sorted, the coins can be taken straight to the bank. It should be noted, however, that the most functional of these tend to be fairly expensive in themselves, and the idea of spending pounds to count pennies can seem counterproductive.


Bank it
With today's interest rates for online savings accounts, it's not unreasonable to expect 3%: 3p a year for every pound. It may not sound like much, but it's not unusual for people to find that their penny jars contain hundreds of pounds - hundreds of pounds that could have been making something as opposed to nothing. Put simply: don't let your money sit around in jars and shoe-boxes for too long.


Conclusion
Look after the pennies and the pounds will look after themselves. It's surprising how quickly shrapnel can add up into serious money, so do yourself a favour and keep all of it in one place. Once you've collected a fair amount, consider sorting and banking them. 

Guilty pleasures - gambling

Everyone has guilty pleasures, often so named because of the disproportionate effect they can have on your finances. There's nothing wrong with any of these guilty pleasures in moderation, but with small changes to your habits you can make huge changes to your bank balance.

For today's guilty pleasure we'll be looking at gambling.


The house always wins
Regardless of your attitude towards it, there's no denying that gambling is an expensive habit. The odds are inevitably stacked against you and the old Vegas maxim almost always rings true: the house always wins.

The national lottery is no different to this. Remember: "It could be you!", but 13,999,999 times out of 14,000,000 it won't be.
 

Never, ever, attempt to use gambling in an attempt to escape from financial difficulties. In all likelihood, you'll only make the situation worse. Instead, speak to a free, qualified and independent debt adviser such as those offered by the CAB. No debt is insurmountable.

Gambling is addiction forming. Not everyone who gambles is an addict, in the same way that not everyone who has a glass of wine on the evening is an alcoholic. It is, however, important that you're able to recognize a problem if one exists.

The most effective way of saving money would be to stop gambling entirely, but some people enjoy the thrill that comes along with it. Pennysitter is about saving money without taking the enjoyment out of life. For the most part, this article will look at keeping things in moderation, gambling only as much as you can afford to lose, and establishing discipline.

If you feel that gambling is becoming a problem for you, or you are concerned about the gambling activities of a family member or friend, you can visit Gambleaware.co.uk which features useful expert advice on how to better manage a gambling habit.  

Remember, you don't have to stop to save money. In fact, even the smallest change to your habit can have a massive impact on your long-term savings. Every pound saved is a pound earned.


Setting limits
"I'll stop after the next win."
"The next go could be the lucky one."
"I almost had it! Just a little more..."
"It's ready to pay out!"

If these thoughts, or thoughts like them, are familiar to you, it's likely that your self discipline could use a little work. It's all too easy to be drawn into gambling - it's designed and contrived to do just that - but it is important to know when to stop and only spend what you can afford to lose.

This has become much more difficult since the arrival of online gambling. Once upon a time it would have been a case of keeping yourself from entering the casino, but at just a keystroke away the temptations can be more overwhelming than ever before.

Before you sit down to gamble, work out how much you can afford to spend and do not exceed it no matter what happens. If you're gambling online, it can be more difficult to keep track of your money, but be vigilant. Remember: losing does not increase your chance of winning - there is no prize 'waiting' for you. If you are winning, learn to quit while you are ahead.
Always keep a diary of how much you are spending on gambling games, and how much you are winning. At the end of each month, add up each and compare. The figures may be eye-opening. Even if you don't wish to stop or cut down, it is still useful to at least be aware of how your money is moving.


Bargaining
You can still save money by seeing gambling as a form of currency in negotiations with yourself. By making yourself choose between two things you want / want to do, you are still going to save money in one way or another.

No matter what you're doing to cut your daily spend, bear in mind that every pound saved means £365 a year that you can keep as financial security or for treating yourself at the end of the year.


Conclusion
Gambling can be a fun thrill, or it can destroy your life. Find out where you need to draw the line and draw it thick. Remember, you don't have to stop to save money. In fact, even the smallest change to your habit can have a massive impact on your long-term savings. Every pound saved is a pound earned.

Couponing - Groceries

Coupons that offer money off particular products or for shopping at particular places can be a great way of saving money.

This article looks at coupons that you can use to cut the cost of your grocery shopping: both how to find them and use them.


Where to find them
Tracking down coupons can be a bit of a treasure hunt. You're never sure where you're going to find them or, indeed, what you're going to find. You can typically find coupons:

• In newspapers as part of an advertisement.
• In free supermarket magazines.
• On product websites.
• At specialist coupon websites.

With regard to the latter, Penny has been scouring the internet and came up with the following finds:

• Moneysavingexpert.com
• Beforeishop.co.uk
• Britainsgreatest.co.uk
• Groupon.co.uk

Check them out, but be sure to browse safely!


Putting them to use
Most coupons are very easy to use. Just hand them over to the cashier before they begin scanning your items. If you're using a self-scan machine, there will usually be a special page for entering coupons; if you have difficulties, ask a member of staff who will be happy to help you.


Location, location, location
Some coupons limit where they can be redeemed. This is especially true of those found in free supermarket magazines: typically the vouchers can only be used in branches of that particular supermarket. Sometimes even particular branches are excluded, so be sure to check the small print carefully. 


Time limits
Most coupons feature expiry dates. Some of these can be quite generous, offering several months for redemption. Others can last only a week or even just a day. If you're considering using a voucher, it's important to check that it hasn't yet expired.

If you take to couponing as a hobby and become a seasoned coupon collector, it can be helpful to file them away by reference to their expiry dates. 


Points to note
Saving money with coupons is all good and well, but there are a few things that should be borne in mind:

• Most coupons cannot be used 'in conjunction with any other offer'. If the item in question is on special offer already, consider whether the coupon is really worth using instead of that offer. 
• Don't be tempted to buy things that you wouldn't normally buy except as a replacement for something you normally buy.
  
  

Conclusion

Couponing can be a useful (and sometimes fun) way to save money on your groceries, but due to their very nature they are not an especially reliable method of cutting your costs. Find and use what you can, but don't go to more effort trying to find them than they are worth.

Penny's Security Tips #5

Easy tips to lower your gas bills

The price of utilities has risen sharply over the last year so it is now more important than ever to save money where you can.

In another article we'll look at how to price-compare for gas providers, but this article looks at small life changes that can help to lower your gas bill.

There is a notable difference between gas use and gas waste. These tips will concentrate on the latter so that you can cut the costs without massively overhauling your lifestyle.
If you need to recap anything you've read, or would like a quick summary of tips, you can scroll down to the Recap section at the bottom of this article.


Feeling warm inside
Turning your thermostat down by just one degree can have the impact of knocking almost 10% from your gas bill: approximately £46. How low can you go?

Instead of trying to tackle the slightest chill by whacking the heating on full, consider wearing more layers or wrapping yourself in a throw or blanket.

If you are leaving the house for an hour or more, turn the thermostat down or off.


Keeping heat in
If you are using a gas fire, keep all doors shut, and fit the bottoms with draft excluders. This way you can better isolate the heat to where it's needed instead of it being wasted.
Thick curtains can also be useful to minimize heat loss when they are drawn. Consider drawing the curtains in the early evening.

Fitting silver-foil or other heat reflective material behind radiators can also increase their efficiency: this is because is prevents the heat from being uselessly absorbed into the wall and, instead, reflects it back into the room. According to Scottish gas, doing this can save you over £14 a year.

Having your home properly insulated can also go a long way in improving your home's heat efficiency and keeping the heat in. The best bit is that it might not cost you a thing: there are a number of insulation grants available (covering things such as loft and cavity wall insulation) for people in all kinds of circumstances, so it is worth contacting your local council to see if you are eligible for any of them.


Be efficient, buy what's efficient
Appliances are becoming increasingly efficient with the amount of fuel they use, so by keeping up to date with the latest in energy efficient technology, you can save a lot of money in the long-run. This is only worth considering, however, if you have sufficient capital to make such purchases.

Efficiency isn't just about technology. If you put a little thought into how you use appliances, you can cut pounds from your gas bill by being efficient yourself. For example, instead of using the oven for individual meals (assuming you have a gas oven), why not cook in bulk and freeze portions to eat later? It is more cost effective to cook a lot in the oven and microwave portions later than it is to cook everything in the oven individually. The same applies to using the hobs: instead of making enough spaghetti bolognese or soup to last just one night, why not cook in bulk? Not only will you cut money from your gas bill, but you'll have a convenient supply of home-made microwavable meals that can be ready in minutes.


Miscellaneous
Here are a few tips that didn't seem to fit anywhere else:

• If you currently receive a paper bill, ask your provider if you are being charged extra for that, or whether you could save money by receiving your bill online instead (if you have suitable access to the internet).  Some companies charge upwards of  £3 each time they send out a paper-bill!
• Changing your payment method can also reduce your gas-bill. Providers tend to be most amenable to customers who are willing to set up regular payments by direct debits. Ask your supplier how much they are prepared to discount you for this.
  
  
  

Recap

If you're serious about saving money on your gas bill:

1. Turn your thermostat down: even one degree can make a big difference.
2. Wear a sweater or snuggle up in a throw if things get a little chilly.
3. If you are leaving the house for more than an hour, turn the thermostat down.
4. Keep all doors shut and use draft excluders to isolate heat.
5. Hang thick curtains and draw them on the evening to reduce heat loss.
6. Fit silver foil or other reflective materials behind radiators.
7. Ensure your house is properly insulated. Check if you are eligible for grants to do so.
8. Invest in fuel efficient appliances. 
9. Minimize your oven use by cooking in bulk.
10. Switch to a paperless billing system.
11. Change your method of payment to a regular direct debit.

Guilty pleasures - drinking

Everyone has guilty pleasures, often so named because of the disproportionate effect they can have on your finances. There's nothing wrong with any of these guilty pleasures in moderation, but with small changes to your habits you can make huge changes to your bank balance.

For today's guilty pleasure we'll be looking at drinking.


Down the hatch
Regardless of whether you think it's a good thing or a bad thing, there's no denying that drinking is an expensive habit. Alcohol is becoming increasingly expensive, particularly following the minimum price per unit imposed in the UK markets.

The most effective way of saving money would be to stop drinking entirely, but realistically most people enjoy a drink. For the most part, this article will look at keeping things in moderation.

If you feel that alcohol is becoming a problem for you, or you are concerned about the drinking of a family member or friend, you can call Drinkline -the national alcohol helpline. It is a free and confidential service that is available 24 hours a day at 0800 917 8282. Additionally or alternatively, consider visiting Alcoholics Anonymous (AA) and DrinkAware.co.uk.

Pennysitter is all about saving money: there are plenty of other websites, as mentioned above, that deal with other aspects of drinking. You don't have to stop to save money: in fact, even the smallest change to your habit can have a massive impact on your long-term savings. The following example illustrates the effect that drinking just one fewer pint a week can have on your income.

• Example:
• 1 fewer pint per week (average: 2.50 each)= 52 fewer pints per year. 
• 52 fewer pints = big savings (average: 130 per year).

For a more accurate estimate of how much you are spending on pints, take a note of the price at your local pub or the typical supermarket price. 

It's always worth keeping a diary of how much alcohol you drink. Even if you don't wish to stop or cut down, it is still useful to have this awareness, and nobody has to see it.


Bargaining
You can still save money by seeing alcohol as a form of currency in negotiations with yourself.By making yourself choose between two things you want, you are still going to save money in one way or another.

No matter what you're doing to cut your daily spend, bear in mind that every pound saved means £365 a year that you can keep as financial security or for treating yourself at the end of the year.


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N.B. If you're trying to stop drinking or cut down, make sure you're doing so safely. Any reduction in the amount of alcohol you are drinking must be gradual, otherwise you could suffer severe side effects from withdrawal. To find out how to cut down safely and to find links to other support organizations, visit NHS Alcohol Support.

Reading List: Look After the Pennies

For today's addition to the Reading List, we'll be looking at Look After the Pennies by Tess Reed.

This book contains over a hundred tips for saving money on virtually all aspects of your life. It's broken up into small sections for ease of reading including shopping, utility bills, insurance, groceries, food saving, savings, mortgages and rent, making money, credit cards and debts, holidays, house buying, home improvements, cleaning, travel, health and beauty, family, weddings, funerals, and Christmas.

Some suggestions, however, do appear to be clutching at straws. Additionally, some of the organizations referred to in the text no longer exist. You would also do well to take the legal advice at the back of the book with a pinch of salt as some of the advice is incorrect (for example, a shop is NOT obliged to sell you something at the price that is on the shelf as the book claims).

Interested in this book? You can find it and other Reading List suggestions at Penny's Shop.

Priority & Non-Priority Debts

Not all debts are created equally. This article looks at the differences between priority and non-priority debts. The distinction is incredibly important.

Non-priority debts are those debts for which creditors (the people to whom you owe money) have far less power to enforce. Usually such creditors will have to pursue the debt through the courts if they wish to enforce them.

Whether priority or non-priority, debts should NEVER be ignored. If you are suffering financial hardship, it is imperative that all creditors are informed of this. 


Priority debts
Priority debts are so-named because repaying these debts needs to come before anything else. Such priority debts often have dire consequences such as the loss of utilities, repossession of your property, or even imprisonment.
 
Priority debts must be paid, and the consequences for not doing so can - as mentioned above - be severe. If you cannot afford to make payments in full, it is vitally important that the creditor is contacted and informed of your financial circumstances. It will usually be possible to arrange for a lower monthly payment.

So what types of debts are priority debts? Priority debts include (but are not necessarily limited to):

• Mortgage payments.
• Rent arrears.
• Secured loans.
• Council tax arrears.
• Income tax and/or VAT arrears.
• Utilities arrears (other than water rates).
• Fines imposed by the magistrates' court.
• Child support / child maintenance arrears.
  

Clicking on each link above will take you to a further page which looks at the action you could take with regard to each type of debt. 

Remember, the general rule is that a priority debt is defined its potential consequences. The creditors that shout the loudest aren't always the creditors with the most power.


Non-priority debts
Non-priority debts are those which don't fall into the definition of priority-debts and include things such as:

• Unsecured loans.
• Credit cards.
• Store cards.
• Catalog debts.
  

Make no mistake that non-priority debts are, non-the-less, important and must not be ignored. However, non-priority creditors have to go to much time and expense if they wish to claw back money they are owed. For this reason, it is more likely that non-priority creditors will be amenable to accepting lower repayments.

Conclusion

If you don't have enough money to go around, it's important to know which creditors you should be giving priority to paying. If you fall into financial difficulty, it's important that ALL creditors are informed immediately so that negotiations can begin.

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NB: If you are in severe financial difficulty and feel overwhelmed by your debts, visit your local Citizens' Advice Bureau. Many CAB's receive special funding to provide debt caseworkers who can deal with your matter from start to finish. Further, the CAB and organizations like it have greater bargaining power when it comes to negotiating lower payments.

Dealing with priority debts: mortgage arrears

YOUR PROPERTY CAN BE REPOSSESSED IF YOU DO NOT PAY YOUR MORTGAGE.

If you're in arrears with mortgage repayments, you should contact your lender as soon as possible.


Making contact
Though it is becoming increasingly rare, it is worth checking if you have mortgage protection insurance: this will usually cover periods when you are unable to make payments due to circumstances outside of your control.

When you contact your lender, you should explain why you have failed to make your payments (the circumstances that have led to your financial difficulties) and how you intend to pay them (for example, paying smaller instalments).

You may be able to negotiate with your bank to make smaller monthly payments. Alternatively, you could suggest that the amount of the arrears is added to the original sum borrowed and, thus, becomes part of the amount borrowed (however, this would have the effect of increasing your monthly repayments to take account of the additional sum).

Some lenders will impose financial penalties for late payments, or ongoing penalties over the term that payments are in arrears. If this is the case, you should request that your lender waive these charges for the time being.


Additional considerations
If you are in receipt of any of the following benefits, you may be entitled for payments to be made on your mortgage interest. 

• Job Seekers' Allowance
• Income Support
• Guarantee credit of Pension Credit

Note that only the interest is paid by such benefits, and is paid directly to the lender.

Dealing with priority debts: rent arrears

YOU CAN BE EVICTED FROM YOUR PROPERTY IF YOU DO NOT PAY YOUR RENT.

If you're in arrears with rent payments, you should contact your landlord as soon as possible.


Making contact
Local authorities and housing associations are known as 'Social Landlords'. Generally such landlords are more amenable to accept low and regular repayments to pay off rent arrears.

Private landlords may be less agreeable and your negotiating power may rely quite heavily upon your previous relationship with your landlord.

If you are in receipt of certain benefits as bullet-pointed below, you can arrange for these repayments to be deducted directly from your benefits (Third Party Deductions).

• Job Seekers' Allowance (Income Based)
• Income Support.
• Pension Credits.
  
  
  

Additional considerations
If your income is low, you may be eligible for Housing Benefit, which will help towards the cost of renting. You can obtain a claim-form from your local council or Job Centre. 
For more information on Housing Benefit, see Directgov. 

Dealing with priority debts: secured loans

YOUR SECURED ITEMS CAN BE REPOSSESSED IF YOU DO NOT PAY YOUR SECURED LOAN.

If you're in arrears with repayments for a secured loan (where the security is something other than a property), you should contact your lender as soon as possible.


Making contact
Though it is becoming increasingly rare, it is worth checking if you have payment protection insurance: this will usually cover periods when you are unable to make payments due to circumstances outside of your control.

When you contact your lender, you should explain why you have failed to make your payments (the circumstances that have led to your financial difficulties) and how you intend to pay them (for example, paying smaller instalments).

You may be able to negotiate with your bank to make smaller monthly payments. Alternatively, you could suggest that the amount of the arrears is added to the original sum borrowed and, thus, becomes part of the amount borrowed (however, this would have the effect of increasing your monthly repayments to take account of the additional sum).
 
Some lenders will impose financial penalties for late payments, or ongoing penalties over the term that payments are in arrears. If this is the case, you should request that your lender waive these charges for the time being.


Additional considerations
If you are in receipt of any of the following benefits, you may be entitled for payments to be made on your mortgage interest. 

• Job Seekers' Allowance
• Income Support
• Guarantee credit of Pension Credit 
  
  

Note that only the interest is paid by such benefits, and is paid directly to the lender.

Dealing with priority debts: Council Tax arrears

YOUR WAGES CAN BE GARNISHED, YOUR BELONGINGS CAN BE REPOSSESSED, AND YOU CAN EVEN BE IMPRISONED FOR UNREASONABLE FAILURE TO PAY YOUR COUNCIL TAX.

If you're in arrears with Council Tax payments, you should contact your local council as soon as possible.

Be aware that imprisonment is the last resort: it will only be employed if you are found guilty of 'wilful refusal' (aka, you intentionally fail to pay your council tax even though you are able) or 'culpable neglect' (aka, it's believed that you are only unable to pay because you are neglectful of your finances).

 
Making contact

You must make arrangements to repay. Typically repayment will be expected within the financial year (1st April to 31st March). In special cases where you are facing financial hardship that is beyond your control it may be possible to negotiate a longer repayment period.


Additional considerations

It is worth considering your eligibility for council tax discounts. If you are on a low income, live alone, or are disabled, you may be entitled to Council Tax benefit.

It is also worth checking to see if your property has been assigned to the correct Council Tax band. You can check your tax band against neighbouring properties on the Directgov website. If you believe that the tax band assigned to your property is too high, you can arrange for your Council Tax liability to be reassessed by the Valuation Office Agency. Be warned, however, that your tax band can be moved up as well as down, so be sure that the properties you are comparing with have a similar value. 

Dealing with priority debts: Income Tax and/or VAT arrears

THE HMRC OFTEN USES PRIVATE DEBT COLLECTION AGENCIES TO CHASE DEBTS.

Typically, this will only be relevant if you are self-employed. If you are in arrears for Income Tax and/or VAT, the relevant creditor will be the HMRC.


Making contact
You should contact the HMRC immediately. Interest will be added to the arrears. It may be possible to arrange for the arrears to be paid in instalments and, where you can prove financial hardship, for interest to be temporarily put on hold.


Additional considerations
It is important to check that your Income Tax liability has been correctly calculated. 

Dealing with priority debts: utilities arrears

YOUR SERVICES CAN BE CUT IF YOU FAIL TO PAY YOUR UTILITY BILLS.

If you're in arrears with utility bills, you should contact the affected service providers as soon as possible. Failure to do so may result in your service being cut off.


Making contact
Explain the circumstances of your financial difficulty. If these difficulties are only temporary, you can try to arrange for arrears to be paid off over a number of months. Alternatively, you could try to arrange for monthly payments to include a small element of your arrears.

With regard to certain utilities such as as gas or electricity, consider requesting a pre-payment meter. This will require you to pay for utilities, including arrears, before it is consumed. The use of a pre-payment meter will help you to better appreciate your fuel usage and will all but eliminate the risk of going into further debt on your utilities.


Additional considerations
If you are having difficulties budgeting, and are in receipt of the benefits bullet-pointed below, consider asking the DWP to make payments directly from your benefits (Third Party Deductions).

• Job Seekers' Allowance (Income Based)
• Income Support.
• Pension Credits.
  
  

If you feel that the utilities supplier you are with is too expensive and you are able to find a better deal elsewhere, you should consider price comparing and changing providers. Note, however, that changing providers does not release you from debts owed to your existing provider.

Dealing with priority debts: magistrates' fines

YOUR POSSESSIONS CAN BE REPOSSESSED IF YOU FAIL TO PAY MAGISTRATES' FINES.

If you're in arrears with utility bills, you should contact the affected service providers as soon as possible. Failure to do so may result in your service being cut off.


Making contact
If you re summoned to court, you should attend. You will be sent forms which you must complete and return. In particular, you will be given the opportunity to outline your financial circumstances. If a fine is imposed against you, you should request permission to pay in instalments given your financial circumstances.

Whether or not instalments are permitted, you will be ordered to pay the fine within a set time limit. If you are unable to meet this time limit, you can request a 'means enquiry'. This enquiry will take the form of a hearing (which you would have to attend) which will take account of your financial circumstances (whether or not the are different to when the fine was imposed) and a decision will be made as to how the fine should be paid.

 
Additional considerations
If you discover that bailiffs have been instructed, seek advice immediately! The CAB are often successful in obtaining a temporary freeze on recovery action while debt advice is sought provided you comply with their requirements. 

Dealing with priority debts: Child Support arrears

YOUR SALARY CAN BE GARNISHED, YOUR BELONGINGS CAN BE REPOSSESSED, YOU PROPERTY CAN BE PLACED UNDER A CHARGING ORDER, AND/OR FUNDS FROM A BANK ACCOUNT CAN BE SEIZED IF YOU FAIL TO PAY CHILD SUPPORT. 

If you're in arrears with making Child Support payments, you should contact the Child Support Agency as soon as possible.


Making contact
The purpose of contacting the Child Support Agency will be to reassess your financial circumstances and capabilities, and/or to negotiate how any arrears ought to be paid.


Additional considerations
If an order is made against you by the courts, you can apply for the court to consider your financial circumstances (which you will need to prove). The court may then, at its discretion:

• Write off arrears if it is satisfied that you fell into arrears through no fault or your own and, furthermore, you cannot afford to pay them; or
• Order that deductions are made directly from your salary (if you are in employment); or
• Direct a different method of payment such as direct debits; or
• Instruct bailiffs to seize your belongings (up to the relevant value); or