Debt Remedy

Your Personal Action Plan
From the information you've given us, we've produced a personal action plan that is specifically tailored
to your situation.
It contains details of your financial situation, the solution we've recommended and a personalised step
by step guide called 'what to do next'. All you need to do, to get your financial situation back on track, is
follow these simple steps.
Your debt advice guide includes useful information on ways to try and improve your situation and the
actions that your creditors can take. For more information you can visit our Debt Information and Advice
section.
If your situation changes please revisit StepChange Debt Remedy, make any changes you need to and
download a new personal action plan.
If you've got any questions please call us on 0800 197 1704. We're open Monday to Friday 8am to 8pm
and Saturday 9am to 2pm. You'll need to quote your web number, which is W43145736, when you call.
To protect your personal information please don't give your web number to anyone else, including your
creditors.
We are an independent charity dedicated to overcoming problem debt. Our advice and solutions services are effective, tailored and importantly, free.
Foundation for Credit Counselling • Wade House, Merrion Centre, Leeds, LS2 8NG • Company No 2757055 • Charity No 1016630
www.stepchange.org

Section 1
Your financial situation
This shows the information you have given us
Section 2
Your debt solution
Everything you need to know about making your monthly payment
Your debt advice guide
This guide provides practical advice that will give you useful ideas on how to
improve your situation and how to handle your creditors.

Section 1
Your financial situation
Your financial summary
Monthly income
The total of all money you receive in a 'calendar
month'*.
£657
Monthly outgoings
The total of all household spending in a 'calendar
month' including payments to any 'secured' debts and
all priority household bills.
£569
Monthly contractual payments
The balances on your unsecured debts have been
used to work out the amount of money you’d need to
make your minimum payments each month.
£34
Total number of creditors
The number of unsecured debts you need to pay each
month.
1
Total unsecured debt
The amount you owe your creditors for all unsecured
debt.
£664
Once you have paid your priority household bills, you have £88 available each month.
*Calendar monthly means that we have calculated the amount into a yearly figure and then divided by
twelve.

Section 1
Your financial situation
Your budget
Housing Amount Comments
Rent £380
Mortgage
Secured loans
Charging / Inhibition order
Mortgage endowment premium
Service charge/ground rent
Water
Council tax £50
Gas
Electricity
Other household fuels
Household Services
Building/contents insurance
Telephone/mobile/internet
TV licence
Satellite/cable television
Repairs/maintenance
Household appliance rental
Child maintenance
Childcare
Fines/CCJs/decrees
Life insurance/pensions
Medical/accident insurance
Hire purchase
Amount Comments
Transport Amount Comments
Spares/servicing
Road tax
Insurance
Breakdown cover
Fuel/parking
Public transport
Food & Housekeeping Amount Comments
Food, toiletries, cleaning
£50 Reduced to pay priorities
School meals/meals at work
Pets/pet foods/insurance
Tobacco
Misc. Goods & Services Amount Comments
School trips/activities
Medicine/prescriptions
Dentist/opticians
Hairdressing
Union/professional fees
Laundry/cleaning
Education fees
Personal & Leisure Amount Comments
Clothing/footwear £5
Newspaper/magazines
Sports/hobbies/entertainment
Children's pocket money
Religious contributions
Sundries & Emergencies Amount Comments
Sundries/emergencies £35
Loan from family/friends £49 Fair amount based on outstanding balance of £380.00
About You
Details
Date budget created 20 Aug 2014
No of adults 3
No of dependants 0
Your Income
Take home pay
Partner's take home pay
Rent/board received
Amount
Pension received £657
Any other income received
Income Support
Jobseekers Allowance
Incapacity Benefit/ESA
DLA/PIP
Working Tax Credit
Child Benefit
Child Tax Credit
Child Support
Total Income £657
Total Expenditure £569
Surplus (Deficit) £88
Budget Comments
Please note: Payments are not being
administered by StepChange Debt Charity.
This budget was created online using StepChange Debt Remedy

Section 1
Your financial situation
List of creditors
Creditor Name Debt Type Outstanding Balance Contractual Payment Ownership of Debt
building society Overdraft £664 £34 Me
TOTAL
£664
TOTAL
£34

Section 2
Your debt solution
Monthly payment arrangement
Your financial summary shows that you can afford to make your payments to your unsecured debts
(loans, credit cards etc). These add up to a total of £664 and you can afford to pay them £88 each
month.
About making a monthly payment arrangement
It may mean a few changes to your spending but the amount you have left over after paying for all your
household priorities, means that you will be able to make a monthly payment arrangement with your
creditors to pay off your debt, even if you are in arrears with them.
Your first priority is to clear any arrears and debts which are over limit, such as your overdraft or credit
cards. This will mean that you will start to reduce the interest charges and over limit fees you are paying.
Once you have done this, look into ways to clear the rest of your debt as soon as possible.
Paying the debt off early saves you money. This is because when you reduce the time to pay off your
debt, you also reduce the amount of interest and other charges which you would normally pay if you were
only making the minimum payments.
How this works
When you are able to meet your monthly payments it is very unlikely that your creditors will stop interest
or other account charges.
Try and make an acceptable arrangement with the creditors whose debts you are in arrears with by
paying them more than your normal monthly repayment. Once you have made an arrangement, stick to it
and never agree to pay more than you can afford otherwise you will get further behind with your other
debts or priorities.
Once you have done this you should consider reducing or paying all your debts off as soon as possible
by continuing to pay your creditors whatever you can afford extra each month.
Also, shop around to see if you can use different loans and credit cards which offer cheaper rates of
interest. But don't use these to borrow any more new money and always carefully check the terms of the
new agreement before signing.
Never be tempted into taking out a large consolidation loan to repay your debts and then start using the
existing limits to build up even more debt. Once you have paid your debts off, cancel the agreements
and destroy any cards.
To help you find the best way of reducing or paying your debts off, take a look at some trusted
comparison websites such as www.moneysavingexpert.com or speak to an independent financial
advisor.
If your credit rating is already affected, you may not be able to get cheaper credit so just continue
making the extra monthly payments.
Things to consider

Section 2
Your debt solution
If you are finding it difficult to stay within your overdraft limit and you cannot easily reduce your balance,
you need to consider using another bank account.
Treat the overdraft as any normal unsecured debt and pay off the outstanding balance at the amount
shown on the list of creditors.

Section 2
Your debt solution
What to do next
Resume paying the monthly contractual payment to your creditors. Check
that the information in your budget and creditors list is accurate. Make life easier
for yourself by paying your creditors using the best available method, for example
set up a Direct Debit.
Contact your creditors. If you are behind with your payments, clear arrears by
paying more than your normal monthly amount. You need to tell your creditors how
you intend to deal with any arrears. Stick to the arrangement by paying the extra
money at the same time as your normal payment each month and don't be
pressured into giving them more than you can afford.
Clear your remaining debt by paying extra money to each of your creditors every
month. As you pay each debt off, use the money which you used to pay them to
clear all your other remaining creditors more quickly.
Check the other information in 'Your debt advice guide' for other ideas on
how to improve your situation by reducing your expenditure and increasing your
income.

Section 2
Your debt solution
We also recommend you
The information you've just read advises you on the best way to deal with your debts. We also
recommend you look at ways to increase your income and reduce your spending.
Please read 'Your debt advice guide' for ideas on this. In the meantime, here are a few ideas to help
you get started:
Make sure the other adults in your household are contributing as much as they can to your
household income. It is important that they contribute towards their cost of living even if they are only on
a low income. For example, towards:
●
●
●
●
●
Mortgage or rent
Council Tax
Gas, Electricity and Water
Food and clothing
Transport
This will help you to improve your situation and may mean that you can repay your debts quicker.
Visit our online StepChange Wellbeing service.
Financial difficulty can often affect your personal wellbeing. We think you could benefit from some further
advice as the information you have given shows us you are displaying signs of depression and anxiety.
You can access this service at www.stepchange.org/wellbeing using web number, W43145736.
Keep up with payments to your priority household bills such as your mortgage or rent, council tax,
and utilities (gas, electric and water). If you do not, there are consequences. These are listed in 'Your
debt advice guide'. Please refer to the section titled, 'What to pay first' to find out more.
Change your bank account as your overdraft is included in your list of creditors. Your bank can take
money from your account to clear the overdraft and remove your facility. Open a basic bank account
where you do not have any unsecured debts. Make sure you have the new account open before telling
your existing bank and remember to switch your essential direct debits for household bills.
A list of alternative bank accounts can be found at www.moneyadviceservice.org.uk.
Talk to the friend or family member that you owe money to. We recommend that you pay them
£49 a month. This amount is based on how much you owe to them, how much you owe to your
unsecured debt and the amount of money you have available each month. By doing this we can make
sure you're paying a fair amount back to everyone you owe money to. If you've spoken to your friend or
family member and you can't pay them the amount we've recommended please call us on 0800 197
1704 and we can discuss your options.
Tell your partner about your financial difficulties if you feel able to. This may avoid future problems or
relieve stress by sharing your worries.

Your debt advice guide

Whatever your debt
problem, we can help
We are the UK’s leading debt charity. Every year, we help thousands of people
overcome their debt problems.
Because we are a charity, our advice is completely free. Many debt management
companies charge for their services or conceal how they make profits from
handling your debt problem. When you deal with StepChange Debt Charity,
however, you can be assured that you’re taking advice from a trusted and
impartial source.
No matter how serious your situation, we will always provide the help and support
you need. We will consider all the options available to you and recommend the
best course of action to solve your financial problems.
Take control of
your finances
You are
not alone –
we’re here
to help you
When debts get out of control, it’s often difficult to know
where to turn. Worry and stress can make it difficult to
think clearly and make the right decisions. That’s why
we’re here to provide the expert and impartial advice
that you need.
You might owe money to lots of different companies.
They might be banks, loan companies, energy
companies – maybe all pursuing you for money at the
same time. They might even be threatening you with
legal action. But being in debt is not illegal. And you
should never feel pressured into repaying more than
you can afford.
The important thing is not to panic or bury your head in
the sand. There is a way out of this. And we can help.

Whatever your debt
problem, we can help / cont.
Your next step?
Just follow our advice
By contacting StepChange Debt Charity,
you’ve already taken the first important step
in your financial recovery. Your next step is to
follow the advice that we have provided in
this pack.
This guide gives you general advice and tips
on dealing with debt problems and managing
your money. But the personal action plan that
we’ve enclosed gives you specific advice
that’s tailored to your situation. It gives you a
complete summary of your financial position
now and the actions you need to take to
improve things.
Please take time to read your personal action
plan carefully, and, where we have outlined
actions to take, try to take them.
Some other steps
to take:
Stay calm and think things through
Debt problems are never solved overnight. Take time
to sort things out. Just by contacting us and reading
through our advice, you will be able to clear your head
and organise your thoughts. Remember, if you need
further help, we’re here to support you.
Share your problems
If you feel that you can, consider sharing your problem
with someone who’s close to you. Talking about it may
relieve a lot of stress. It may also help you work things
out and give you more practical ideas about dealing
with debt.
Don’t borrow more money by:

Improving your
financial situation
Within this pack, we’ve given you tailored advice to help you with your current
financial problems. But there are many things that you can do to make sure that
your spending and income are better balanced. Tighter budgeting and being
more disciplined in the way that you manage your money will bring long-term
benefits, too.
Reducing your spending
If you’re already cutting back on your spending,
you’re doing the right thing. But could you do
more? We may have highlighted areas where
you can look to save money. Here, though, are
some general points to consider. If you haven’t
already made a conscious effort to reduce your
spending, now’s the time to do it.
Shopping
If you plan your shopping and work to a budget, you are
less likely to make impulse buys or spend more than you
want to.
• You should never cut back on essential food items.
But are there cheaper brands or supermarket
own-label brands that offer better value?
• Consider switching to a cheaper supermarket
• Look out for special offers, keep coupons and
remember to use them
• There might be reduced grocery items available at the
end of the supermarket day. Could you take advantage
of that?
• Use a shopping list and stick to it.
Utilities
Gas and electricity
Are you getting the best deal on your gas or electricity?
It might be that by switching your current provider, you
could reduce your bills. Go online to see what’s possible.
You can compare, switch and save using our free and
impartial switching service at
www.stepchange.org/utility-switching
If you stay with your current provider, there are other
ways you could save money. Most companies offer a
discount for paying by direct debit.
Or if you have gas and electricity from the same supplier,
you could get a dual-fuel discount. Contact your supplier
to see if that’s available to you.
Maybe you can reduce your energy consumption.
There are many ways you can do this, such as using loft
and cavity wall insulation. There might be free offers
available. Visit www.energysavingtrust.org.uk or call
them on 0800 512 012.
Water
If you are a low water user, it might be cheaper to have
a water meter fitted. There are also water saving devices
that can be used in the home. Contact your water
company to find out more.

Improving your
financial situation / cont.
We have helped
to change the
lives of over two
million people
Telephone, satellite and internet
These bills can really add up. So it’s really worth
reviewing the package that you are on to make sure
that it offers the best value available. Check with your
current provider, shop around or use comparison sites.
Here are a few ideas for cutting costs:
package. Bundling all three together usually results
in a better deal.
If you can live without those extra TV channels,
for example, you can make substantial savings.
a pay-as-you-go phone. With a pay-as-you-go
phone, you can control how much you spend
more easily.
Housing
One of your biggest monthly bills is likely to be
your mortgage or rent. Moving home is probably
a last resort, but if you think it is possible, consider
downsizing or moving to a cheaper property.
Increasing your
income
When times are difficult, finding ways to boost your
income is not an easy task. But if you’re able to work,
don’t give up. Keep looking for opportunities that could
improve your situation. If you’re already in work, could
you increase your hours or take on a second job?
A few other things to consider
share the bills

Tackling your debt
Ideally, everyone who borrows money should do everything they can to repay it.
Sometimes though, the situation can be so severe that repaying the full amount
simply isn’t possible. Whatever your circumstances, we’re here to do what’s best
for you. We work out what you can afford and, where necessary, mediate with
creditors on your behalf. There are some actions, however, that you need to take
which should take priority. So check your personal action plan and follow our
advice below.
What to pay first
When tackling debt, it’s important to know
which debts you should pay first. Priority debts
are the ones that carry the most serious
consequences if not paid. It’s not the size of
the debt that’s the most significant factor here,
but what can happen if you don’t pay, such as
losing your home or losing essential services
such as gas or electricity.
The best way to deal with your priority
creditors is to contact them, give details of
your situation and tell them what you can
afford to pay, based on the budget we’ve
helped you prepare.

Tackling your debt / cont.
Don’t be pressured
to make higher
payments than you
Priority debts
Mortgage
Rent
Council Tax or Rates
Magistrates Court Fines
Tax, VAT or National Insurance
County Court Judgments
Child Maintenance
Gas, Electricity or Other Fuel
Hire Purchase
Telephone
Result of non-payment
A visit from bailiffs, deductions taken
from your salary or imprisonment
A fine, deductions taken from
your salary or imprisonment
Paying what you
can afford
Your budget shows to what extent you can
manage day to day living costs and priority
debts. What’s left over is what you can pay to
your non-priority creditors.
Do not use the money set aside for your
priority household bills to pay your non-priority
creditors. Falling behind with your mortgage
has far more serious consequences than
falling behind with your credit card.

Actions that
creditors might take
It’s only natural that your creditors will want to try to persuade you to continue
or even increase your payments to them. By knowing your rights and
responsibilities, you’ll be better prepared when they do contact you. And if
there’s anything you’re unsure of, you can always call us for practical advice.
If you are behind with your payments, your
creditors might take a number of different
actions to recover the money owed to them.
You need to be prepared for the time when
your creditors might increase pressure.
Default notices
Usually, if you are two to three months in arrears, your
creditor will send you a default notice. (A default notice
is the last chance you have to clear your arrears before
they end the original credit agreement.)
At this point you can still arrange to make a reduced
payment. If they accept your offer, they are still likely
to send you a letter ending the agreement. You are
still responsible for paying the debt in full even if the
original agreement has ended.
When they have ended the agreement, your creditor
can use a collection agency or solicitor to help them
recover the debt.
It’s not a
crime to be
in debt
Actions solicitors and debt collection
agencies might take
If you receive a letter from a solicitor or debt collection
agency, don’t panic, but don’t ignore it.
Any letters that you receive might be threatening and
mention court action. But don’t panic. Solicitors and
collection agencies have no more legal powers than
your original creditor to force you to pay.
Home visits are rare. Debt collectors are not bailiffs, and
you don’t have to let them into your home. In the rare
event that a bailiff does call, you can still offer a reduced
payment and show your budget and list of creditors.
If you get a court letter, try not to worry. You can still offer
to make a reduced payment to the creditor (based on
what you can afford) by completing the details on the
forms they send you. The creditor will then accept or
reject the offer and work with the court to decide what
payment you should make. If you need any further help,
just give us a call on 08442 641 919 and we can talk you
through what happens and what you should do.
Harassment
Creditors and their collection agencies are allowed to
make reasonable contact to collect the debt owed by
you. If they call or visit you at work or call late at night,
this is harassment, and you can complain to trading
standards. Their details can be obtained from
www.tradingstandards.gov.uk.

Together, we can solve
your debt problems
We can help
you out of debt
When you face severe financial problems, it’s often difficult to see a way out.
The best thing you can do is ask for help. With our support, and the vast
experience we have in dealing with problems like yours, we can resolve issues
that, at times, might seem impossible. We help thousands of people every
meaningful than ours.
“ It seemed so easy to get a loan
here, a credit card there and
instantly have money to spend.
But very soon it built up to a level
where I felt trapped. You helped
me get my life back in order.”
“ Even when I was
overloaded with
letters and phone
calls from some of my
creditors, your advice
and assistance was
all that was needed
to return to the
status quo. The whole
service has been just
fantastic.”
“ The stress and anxiety of
not being able to pay your
creditors is unbelievable.
But with your wonderful
charity’s help, it seems we
have been given a reprieve.”
“ Debt hung over me
like a dark shadow.
But just knowing that
I had you to support
me made me feel
much less anxious
about everything.”
“ Your professionalism, friendliness, expertise
and understanding reassured me every
time I called. You’re a superb team, and

“ After going through my budget with
the advisor, I realised that with careful
budgeting I could turn my life around
and be debt-free quicker than I ever
thought possible.”
Your next steps
Recognising that you’re in financial difficulty is the first
step towards addressing problem debt. It’s also one of
the hardest. By getting in touch with us you’ve already
taken a huge stride towards a debt-free future. But what
you do next is just as important.
It’s only natural to feel a little daunted at the start of
a journey like this. But we’ll be with you every step
of the way. The personal action plan included in this
pack is a great place to start. It’s tailored to your own
circumstances, so there really is no better plan for what
you need to do next. And if there’s anything you’re not
sure of, just give us a call.
For more information
Call: 08442 641 919
Monday to Friday 8am to 6pm
Online: www.stepchange.org
StepChange Debt Charity, Wade House,
Visit our website where you can find even more valuable
information and resources about debt and money in general.
You can read our blog, follow us on Twitter or visit us on
Facebook simply by following the links on the homepage.
© 2012 Foundation for Credit Counselling
Registered Office: Wade House, Merrion Centre,
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Registered in England No 2757055
Registered Charity No 1016630