Debts? Don't Panic

IT’S all very well being prudent and cutting costs but what if things have already gone too far and debts are staring you in the face? If you are struggling, here are some simple tips to help you get on top of things:

1. Don’t bury your head in the sand
Ignoring your debt problems will only make them worse. Don’t ignore calls or letters from the people to whom you owe money. Contact them to explain why you’re having problems. The sooner you do this, the more options you’ll have for solving your financial problems.

2. Get advice

There are many organisations which offer free and independent money advice such as Citizens’ Advice, Shelter, National Debtline, and the Consumer Credit Counselling Service. Their debt advisers can assess your situation and work out the best course of action for you.

3. Pay your priority debts first
There are some debts you need to pay first before others, because the consequences of not paying them can be much more serious. For example, mortgage or rent debts are a priority as if you don’t pay these you could lose your home. Debt advisers can help you plan your budget and pay your priority debts first.

4. Pay what you can each month
Work out how much money you’ve got coming in and going out of your household on essential expenses like food and bills. Then work how much you’ve got left over to pay your creditors. If you can’t afford to pay back all the money you owe, work out how much you can afford and offer to pay this. A debt adviser can help you do this.

5. Maximise your income
Are you getting all the money you’re entitled to? There may be benefits or tax credits you can get such as Pension Credit or Disability Living Allowance which you haven’t claimed. Working Tax Credit is an in-work benefit which is not just available to people with children. You might be able to get it if you work enough hours and are disabled or your income is low enough, even if you don’t have children. You may be able to get Council Tax Benefit or Housing Benefit to help you pay your council tax and rent. You don’t necessarily have to be out of work to get these benefits. You may be able to get help with your health costs such as prescription charges and dental costs. You may be able to claim help with education costs such as school meals and clothing. You may be able to get a grant to help you pay for things like fitting home insulation and improving energy efficiency. This can help cut down the fuel bills. Your gas and electricity supplier may be able to help you if you have fuel debts. To find out if you can get help, visit the British Gas Energy Trust website at: http://www.britishgasenergytrust.org.uk/ or the EDF Energy Trust website at: http://www.edfenergytrust.org.uk/ There are also some charities which give grants to people to help pay their bills or buy essential items. You can find a list of these charities on the Turn 2 Us website at: http://www.turn2us.org.uk/ An adviser can help you maximise your income. For details of organisations which can help, go to the bottom of this page.

6. Make savings on your household expenses
Look carefully at your spending and see if there is anything you are able to cut down on. For example, you could shop around for a cheaper gas or electricity provider, or look at cheaper mortgage or insurance providers. You can find more information about changing your gas and electricity suppliers from the website of the consumer watchdog, Consumer Focus at: http://www.consumerfocus.org.uk/ To find out more about how to save money on financial products such as mortgages and insurance, go to the website of financial watchdog the Financial Services Authority at: http://www.moneymadeclear.fsa.gov.uk/.

7. Think twice about taking out a loan to pay off all your debts
You may end up paying back a lot more than you borrowed and at very high interest rates. You may not be able to afford the repayments and the loan may be secured against your home which you could then lose.

8. Facing possession proceedings? Don’t panic
Always attend the court hearings yourself. Court proceedings do not mean that you will automatically lose your home. The court process acts as a final check to make sure repossession is the last resort. Some courts have advice desks which can provide last minute assistance.

9. Take care with “mortgage rescue schemes”
Selling your home and renting it back might seem like a quick fix to your debt problems. But, many of these schemes offer very little security. You could end up paying very high rent or even being evicted. These schemes are also not regulated so you will not have access to the same protections as a mortgage holder.

10. Don’t abandon your property
If you are struggling with mortgage repayments you may be tempted to send the keys to your lender or abandon your property. Don’t do this without advice. You could still be responsible for the debt on the property and may be pursued for it years later.

The Use-It-All Cookbook: review

THE trouble with oranges is that there is no way of knowing how sweet or juicy they are until after you have bought them.

So, there I was last week with two lovely looking oranges which, when I peeled them, were fairly dry inside. Normally I might have eaten them anyway, not liking to waste food, or hidden the segments in a fruit salad, hoping a good soaking in fruit juice would plump them up.

Then I remembered I had a book to review, The Use-It-All Cookbook. It had the tagline, “with an A-Z of leftover ingredients and how to use them”. I turned inside for advice on how to use leftover orange and found a recipe for Caramelised Oranges.

It told me the recipe was an excellent way of using up any slightly dried-out oranges. I’m not the best cook in the world but the recipe worked perfectly.

Author Bish Muir lives near Barnstaple in “an increasingly self-sufficient and eco-friendly farmhouse”. Her cookbook includes more than 100 recipes and ideas for using up leftovers. But it is not just a cookbook. There is a wealth of other information, including facts about how wasteful the western world is. There is also a section on planning your shopping and others on “must have” ingredients and kitchen tools and how to store leftovers.

The A to Z of leftover ingredients, mentioned above, is a clever concept. Each item gives suggestions for recipes; something “quick and easy” you can do with the leftover; and general tips.

I looked up bread, having half a loaf that was no longer beautifully soft and fresh. The suggested recipes included fish pie, rissoles, summer pudding and bread and butter pudding. Something “quick and easy” was bread sauce and the tips included making and freezing breadcrumbs and making croutons.

In these credit crunch times, this is an excellent book, packed full of information, hints and recipes. Now, instead of throwing away those wrinkly apples, I’m going to have a go at making an apple and onion confit to accompany roast pork.

• The Use-It-All Cookbook is published by Green Books and is available at £12.95.