Frequently asked questions about....debt
I have 3 credit card bills, a gas bill and I'm behind on my rent, what can I do?
The first thing to do is to maximise your income. This means ensuring that you have all the student funding or government benefits that you are entitled to whilst you study (we can double check your entitlements if you come in to see us), you have applied to MMU's Access to Learning Fund (commonly known as the hardship fund) and you have tried to find a job at MMUnion Job Shop or MMU’s Jobs4students. We would also suggest that you have a look at our Money Management booklet as it includes budgeting tips and offers more information on grants that you can apply for.
Once you are sure that you are getting everything you can, your debts need to be prioritised, remembering that the one that screams the loudest is NOT necessarily the one that is the most important.
You should try to negotiate a repayment scheme that you can ‘realistically afford’ with priority creditors (this is an amount that you can truly afford to repay each week/month, no matter how small). Priority creditors include your landlord, the council tax unit and MMU. These are your priority as your landlord can evict you for non payment of rent or MMU can withdraw you from your course for tuition fee debt.
Non-priority debts (including credit card/overdraft) can then have what's left.
We, at the SU Advice Centre can assist you with negotiating with all creditors.
There's a lot more advice we can you give based on your specific situation and we help many students with debt and money problems so highly recommend that you come and see us bringing with you any relevant paperwork.
You can also look at the Consumer Credit Counselling Service ‘student debt advice guide or National Debtline as they both also offer free debt advice.
I've just received a letter saying that bailiffs will be calling!
First of all don't panic!!! Bailiffs' power is legally restricted. The most important thing though is that Bailiffs should be instructed by a court. This could be for Council Tax arrears, magistrate’s court fines or non-priority consumer debt. Without a court order, they are NOT bailiffs and do not have bailiff powers. The powers are different depending on the type of debt.
Be aware of debt collection agencies that are also employed as bailiffs (but do not have the same powers!) and try to use the confusion to scare people into making payments they can't afford. They can turn up at your door and you may believe they are Baliffs but really they are ‘door step collectors’.
We recommend that you come and see us urgently bringing the paperwork for this, and all other debts, with you.
Oh, and DON’T let them in or give them any easy entry (keep windows and doors locked!) If you own a car, park it away from your house so they cannot decide to help themselves to it!
I owe the university some money and their letter says they can stop me graduating or not enrol me next year.
The university rules DO currently ALLOW this as a sanction for unpaid debt. They also state they can take away services such as the library and computer rooms. It would therefore be a good idea to come and see us for advice on how these rules apply and assistance in challenging or repaying the debt. In particular, a recent decision by the Office of Independent Adjudicators has said that universities should not impose academic sanctions for housing/halls debts.
You can also check out our Money Management booklet.
How am I meant to live on £3.46 and a tin of beans?
If you're concerned about how much you have to live on, then come into the Advice Centre. We can check that you are receiving the correct amount of funding and help you to apply for the Access to Learning Fund. We can also help you with budgeting advice - have a look at our Money Management booklet.