Debt Advice

Are you in debt and in need of some help?

Whether your situation has recently changed and you are starting to struggle with your bills, or if you have debts which have built up over time and seem impossible to deal with, don't put off getting proper advice.

Taking steps now to deal with the problem will stop things getting any worse. Always use an independent advisor - they will help you to sort out your budget, decide which bills need to be paid first, and how much you can afford to pay.

Where can I get advice?

There are a number of ways to get money advice.

If you are a Housing Association tenant, contact your landlord to get advice about paying your rent. They may also be able to offer general advice about money issues.

Independent websites also offer money and debt advice, some of which include 'calculators' to help you manage your money. These include the Money Advice Service, the Consumer Credit Counselling Service, the National Debtline and GOVUK.

You may prefer to speak to an advisor over the phone. The National Debtline has trained advisors who will discuss your money issues with you and help find a realistic way forward. This is an independent organistion and your information will be kept confidential.

Alternatively, if you would like a face to face appointment to discuss your money issues you can find a local advice service offering debt advice here.

Sensible borrowing

If you are thinking of taking a loan to pay your debts or to see you through a difficult patch, think carefully about whether this is the best option. Before you go ahead always:

think about whether you can reduce your outgoings to leave you with more money at the end of the month to pay off your debt
find out if there are any extra benefits you could claim, or other ways of increasing your income

If you decide to go ahead with a loan think carefully about the type of loan that would be best for you. Depending on your circumstances you may be able to get an interest free Crisis Loan, Budgeting Loan or Community Care Grant from the government's Social Fund. Remember that loans have to be repaid from your benefits, but a Community Care Grant does not.

Credit Union loan

If a Crisis Loan or Budgeting Loan isn't suitable for you, think about joining a Credit Union. Credit Unions are non profit making financial organisations which basically work as savings and loan co-operatives. They aim to help you take control of your money by encouraging you to save what you can, and borrow only what you can afford to repay. They help people who can’t get help from an ordinary bank but offer the same government protection as bank savings accounts and are regulated by the Financial Services Authority (FSA).

Doorstep Lenders and Unlicensed Money Lenders (Loan Sharks)

Although some 'doorstep lenders' (money lenders who visit your home to collect repayments on loans) are acting legally, they generally charge extremely high rates of interest and may mislead you about the amount of money you will end up repaying.

Money lenders who operate without a licence from the Office of Fair Trading (OFT) are commonly known as 'loan sharks'. They work illegally and their interest rates mean that the amount of money you owe them may actually increase over time - you are never free of their demands. They often use theats and violence to ensure borrowers make payments, and should be avoided at all costs.

You can check if someone has a licence by searching the Office of Fair Trading's Consumer Credit Register. In general avoid any lenders who appropach you direct, and if you think that a loan shark is working in your area report them in confidence to the Wales Illegal Money Lending Unit (WIMLU) by calling 0300 123 3311, e mailing imlu@cardiff.gov.uk or texting 'loan shark' to 60003. Remember that if you are the victim of a 'loan shark' you have not acted illegally - the offence has been committed by the lender. WIMLU will not take action against you but will try to help to get you back on the right track.