Managing your debt. How to repay your debt and stay out of debt in the future

Transcription

1 Managing your debt How to repay your debt and stay out of debt in the future ALLA0022 APRIL 2007

2 Repaying your debt If you re on income support we usually take a set amount out of your payments every pay day to repay your debt until the debt is fully paid off. The amount we take depends on what you can afford, and can change if your circumstances change. If you want to pay off your debt faster you can choose to make extra repayments at any time. Talk with your Case Manager if you have any questions about your repayments. If your income support stops You need to call us straight away on and arrange to repay the money you owe. We will explain your options and help you work out a repayment plan to suit your budget. Keeping track of your debt It s a good idea to keep track of your debt so you can budget for your repayments. We don t send out regular statements unless you ask us to but you can call us anytime to find out how much you owe. If you re not coping We know it can sometimes be difficult making repayments while you re on a low income. So if you have trouble keeping up with your repayments please call us as soon as you can. We may be able to help by reducing your repayments or providing extra income support for instance or refer you to someone else who can help. You may also find our booklet Need extra help with costs useful. You can pay off a lump sum at any NZ Post Shop, send us a cheque, set up regular deductions from your wages or bank account, or make repayments by phone or internet. While you re repaying your debt you ll have a Debt Management Officer you can call if you have any questions. 2

3 Remember your debt won t go away We actively collect debts owed to us, and take the time to trace people who owe us money. One of the ways we do this is by comparing records with other Government departments (see the Benefit Fraud leaflet for more details). We also have certain legal rights if you don t repay us, for instance we can have money deducted from your wages or bank account. Who you can talk to If you have any questions about your debt or repayments please call if you get income support, or if your income support has stopped. Preventing debts in the future Once you ve paid off your debts, it s really important you try and stay out of debt. Here are a couple of things you can do to help prevent getting into debt in the future. Tell us about any changes By telling us straight away about any changes to your personal situation, you can help ensure the right amount of income support is paid to you so you don t end up owing us money. You should tell Work and Income straight away if you: find a job or have a change in the hours worked whether paid or unpaid become self employed or start to run a business intend to travel overseas (even for a short time) start/finish part-time or full-time study are imprisoned or held in custody on remand are admitted to or discharged from hospital have been granted an overseas pension get married or separate, start or end a civil union or de facto relationship with someone of the same or opposite sex have a change in the number of children living with or supported by you have a change in accommodation costs

4 have any other change that may affect your benefit entitlement or rate of payment of income support change your name, address or bank account number Create a budget plan A budget plan can help you manage your money better. It means you can be more prepared if you suddenly have an unplanned expense and it means you may not need to borrow money to meet these expenses. Ask your Case Manager for advice or pick up a copy of our Managing your Money brochure to help you get started on a budget plan. Please call us if you have any questions about your debt or repayments. Useful contacts Work and Income Debt enquiries Allegation line General benefit enquiries Accommodation and childcare New Zealand Superannuation Veteran s Pensions Community Services Card Deaf Link fax StudyLink Inland Revenue Department General enquiries Working for Families Tax Credits Child Support ACC General claims Sensitive claims Others Citizens Advice Bureau NZ Federation of Family Budgeting Services (Inc) Listed in your local telephone book under: Budget Advice Services 7

5 If you re reading this brochure you ve probably been paid more income support than you re entitled to, or received an advance payment that you ve agreed to pay back. This brochure tells you how you can repay your debt to us, and what you can do to help prevent getting into debt in the future. If you have any questions after you ve read this please give us a call our numbers are listed throughout this brochure. ALLA0022 APRIL 2007