Everybody’s talking about the credit crunch….. and everybody’s feeling it.
It’s also having a significant effect on people’s ability to find housing. As a result Wigan Council is co-ordinating support for residents who may be affected.
Together with other local agencies, the council is looking at ways to:
- increase the availability of affordable homes, through building or by leasing from the private sector;
- reduce the number of empty homes in the borough; and
- extend advice services to people at risk of repossession and work with the new government mortgage rescue scheme.
More details will be announced soon but in the meantime, here are some tips on how to cope with the credit crunch…
GET YOUR PRIORITIES RIGHT
If you’re juggling debts, work out which ones need to be paid first. Your number one priority has to be keeping a roof over your head, so put your mortgage or your rent above all else. And if you’re coming to the end of a fixed rate deal, ask a fees-free independent broker to find you a better deal.
Utility bills and council tax should take precedence over debts such as credit cards – as winter bites, be warm at home not cold in court.
If you have any savings, use them to pay off credit card bills. If you don’t, switch to a credit card that offers zero interest for the first few months.
TALK TO AN EXPERT
If you’re really struggling to make ends meet, seek expert advice. FAST.
Ignoring ‘red’ letters from your mortgage lender, landlord or other companies won’t make the problem go away – it will just make matters worse. You stand a better chance of coming to an agreement with these agencies if you contact them early and try to sort something out.
It is best to do this through an advice agency – people who will make sure the agreement you make works for you. Contact Wigan Borough Citizens Advice Bureau (CAB) on 08701 264459, Wigan Independent Advice Centre on 01942 324851 or visit the
CCCS, the Consumer Credit Counselling Service, is a national debt charity that provides free debt advice and free debt solutions such as debt management plans (DMPs) (external link). They also offer an anonymous, online debt counselling service - CCCS Debt Remedy (external link) - which asks some simple questions about your circumstances and provides instant tailored debt advice and a personalised budget.
Agencies like these are used to dealing with situations like yours; they can help you with things like budgeting, liaising with your mortgage lender or landlord and making sure you are claiming any benefits or tax credits you may be entitled to.
SHOP AROUND FOR BEST DEAL
BEWARE of doorstep lenders and other loan companies offering a ‘quick fix’– they often charge very high interest rates.
If you must go into debt, shop around – make sure you are being offered a competitive rate of interest and that you can realistically afford repayments.
Credit Unions offer excellent value – there are two in the borough: Unify (01942 701706) and Welcome (01942 828702).
If you are thinking of selling your home and then renting it back, THINK AGAIN. This industry is not regulated, so you may not be offered the full market value for your property, you may only get a six month tenancy agreement and you could face eviction after that.
More and more people are becoming homeless as a result.
HOUSE HUNTING?
If you are looking for accommodation in the borough – buying, renting, lodging or sharing – consider all your options. If you’re unsure and need advice, contact Wigan & Leigh Housing on 01942 487717.
