| Dealing with Debt |
People get into financial difficulties for many reasons, often through no fault of their own. Students are no exception as your income is often is not enough to cover your living costs. If you find yourself in debt, don't panic, but don't ignore the problem - it won't go away on its own. Confidential, non-judgmental advice is provided by the Independent Advice Unit.
It is helpful to divide your debts into priorities and non-priorities.
It is helpful to divide your debts into priorities and non-priorities.
| Associations |
These are debts where failure to pay can have serious consequences.
Housing: Failure to pay your rent or mortgage can lead to action which could result in you losing your accommodation.
Council Tax: Non-payment can result in bailiffs seizing your goods, or ultimately, imprisonment. If you are being charged council tax and you think you shouldn't be, contact the IAU.
Magistrate Court fines: Non-payment can result in bailiffs seizing your goods, or ultimately, imprisonment.
Utilities (gas & electricity): Failure to pay can result in disconnection and court action to recover the debt.
University debts: Depending on what the debt is for and what impact it is having, the priority of the debt can change. For many students Uni-debts are a priority. The University have separated academic and non-academic debts, so they will no longer use non-academic debts to prevent you being able to attend graduation. They do, however, reserve the right to use other means to force payment. See Regulation 14 for further details. However, it is best to come in to the Unit to discuss debts to the University before deciding upon any action.
Hire purchase for essential goods: The goods may be repossessed if payments are not made.
Housing: Failure to pay your rent or mortgage can lead to action which could result in you losing your accommodation.
Council Tax: Non-payment can result in bailiffs seizing your goods, or ultimately, imprisonment. If you are being charged council tax and you think you shouldn't be, contact the IAU.
Magistrate Court fines: Non-payment can result in bailiffs seizing your goods, or ultimately, imprisonment.
Utilities (gas & electricity): Failure to pay can result in disconnection and court action to recover the debt.
University debts: Depending on what the debt is for and what impact it is having, the priority of the debt can change. For many students Uni-debts are a priority. The University have separated academic and non-academic debts, so they will no longer use non-academic debts to prevent you being able to attend graduation. They do, however, reserve the right to use other means to force payment. See Regulation 14 for further details. However, it is best to come in to the Unit to discuss debts to the University before deciding upon any action.
Hire purchase for essential goods: The goods may be repossessed if payments are not made.
| Non Priority Debts |
Failure to pay these debts have less serious consequences. Bank loans, overdrafts and credit cards are examples of non-priority debts. However, correspondence concerning non-priority debts, particularly for debt-collecting agencies, can be intimidating and seen as more threatening than correspondence concerning priority debts. However, if a creditor obtains a Court Order against you for non-payment of the debt, and you fail to make the payments on the court Order, bailiffs can be sent to seize your goods. If a Court Order is made against you but you cannot afford to pay it, seek advice immediately.
| Debt Recovery |
If you are already in the situation where you owe money and have been contacted by the person you owe money to or by a debt recovery agency you need to seek advice.
We can check to see if you are liable for the debt or part of the debt. If you are, we can take details of your income and expenditure and negotiate with the creditor on your behalf. It is usually possible to agree a repayment schedule. This must be an amount of money you can reasonably afford. In some cases it may be possible to suspend the recovery proceedings for a temporary period. There are a number of options that may be appropriate.
We can check to see if you are liable for the debt or part of the debt. If you are, we can take details of your income and expenditure and negotiate with the creditor on your behalf. It is usually possible to agree a repayment schedule. This must be an amount of money you can reasonably afford. In some cases it may be possible to suspend the recovery proceedings for a temporary period. There are a number of options that may be appropriate.
Biliffs normally try to persuade you to pay your debt by threatening to take belongings, however they are not allowed to force their way into your home unless they have been let inside on an earlier visit.
NEVER LET BAILIFFS INTO YOUR HOME, THEY WILL THEN NOT BE ABLE TO TAKE THINGS FROM YOUR HOME!
More info about dealing with debt and bailiffs can be found here
| Credit Rating |
There are three main credit reference agencies which credit companies
consult when deciding whether to give you credit. These agencies check
the Register of Debtors that contain County Court judgments, these are Equifax Plc, Call Credit Plc and Experian Ltd.
Judgements remain on the Register for six years, but you can apply to have your name removed if the debt is paid. Credit may be refused if your address has an adverse credit rating. If you are refused credit, you can ask which reference agency was used and then request a copy of the details from the agency. A small fee will be charged. If the details about you are incorrect, you can ask that they be amended.
Judgements remain on the Register for six years, but you can apply to have your name removed if the debt is paid. Credit may be refused if your address has an adverse credit rating. If you are refused credit, you can ask which reference agency was used and then request a copy of the details from the agency. A small fee will be charged. If the details about you are incorrect, you can ask that they be amended.
More details about credit and how to get a credit report can be found at the Information Commissioners Office
| Top Tips |
- The I.A.U. has lots of experience of dealing with debt. However, if you want to deal with it yourself we have leaflets and self-help guides to help you.
- If you think that you might get into trouble during the year - seek advice early on. Talk to the IAU or the Student Financial Support Office.
- Look for ways to maximise your income.
- Recognise when your finances are going wrong, get help or deal with them quickly, as worrying about debt can affect your emotions and studies.
- Don't ignore your creditors and hope they will go away.
- Get in touch with your creditors straight away and explain the difficulties. Don't be pressurised into agreeing to repayments you cannot afford.
- Make sure you tackle your priority debts first.
- If you speak to someone rude or unhelpful on the phone, ask to speak to someone more senior.
- Don't give up if creditors are difficult.
- Be realistic when making an offer.
- Confirm your offer or agreement in writing.
- Always keep copies of all related correspondence.
- If you owe the University money and are having problems see the IAU
THIS IS NOT A FULL ACCOUNT OF THE LAW BUT AN INTERPRETIVE GUIDE
