Making a fresh start. A handout and guide to help you manage your money

Transcription

1 Making a fresh start A handout and guide to help you manage your money

2 Contents About this handout page 1 About this handout Managing your money page 3 Budgeting page 3 Managing debt page 6 Understanding credit and loan sharks page 7 Making money decisions page 8 Keeping track of your money page 9 Where to get more support page 10 Where to start? inside back cover Money problems often start when someone s circumstances change such as a divorce, redundancy or going to prison. It s important you get to grips with money issues before they spiral out of control. You can get help with money matters even when you are in prison and we ve put together this guide to help you. Make use of the budget template on pages 4-5. Sorting your money out might sound difficult but we all have to do it. Everyone needs a minimum amount of money coming in (eg, wages, benefits, etc) to live. It s important 1

3 to learn how to manage money. It can be challenging, particularly if you already feel things are out of control, but there are people who can help. We all need proper advice from time to time. Making your own money decisions is an essential life skill. With the right training you can make good financial decisions which will help you cope even if you are in prison. There is a lot you can do right now. The sooner you start, the more prepared you can be and you can show people that you are serious about changing your life for the better. Take a look at the short list of questions on page 6. Tackle the most important things first and work your way down. Many resettlement units in prison and probation have specially trained staff to help you plan your resettlement into society. Start thinking about: The more information you can get, the more confident you can be about your money decisions. Where are you going to live? Have you got enough clothing? Have you applied for any jobs to increase your income? Have you got a bank account? Have you registered your claim for benefits? Are you coping with your current debts? How are you going to live off the discharge grant? Who can you turn to for more support? (refer to pages 10-19). Managing your money Budgeting It s ok to ask questions about money. The more information you can get, the more confident you can be about your money decisions. A good way to start understanding your money better is to draw up a budget. Write down all the things you will be spending your money on in an average week think honestly about where your money will go: essential and regular commitments (ie, rent and bills etc) everyday spending (ie, food, bus fares, magazines etc) occasional spending (ie, clothes, meals out and birthday presents etc) Add up the cost of everything on the list. Is it more or less than the money coming in? What if you had to budget for a longer period, like a fortnight or a month? What other things would come up? If you are spending more than the money coming in or need help with working through the numbers, check out the useful contacts list on pages10-19 of this booklet. Have a go at the budget planner on pages 4-5. Start writing down all of your money coming in and money going out to work out how much you will have left over in a week a month or a year. The more often you do this, the better you will get at knowing what you can and can t spend. 3

4 Money going out Regular commitments Rent/housekeeping money Council tax Gas bill Electricity bill Water bill Phone bill Credit card bill Loans Insurance Savings Other Everyday spending Travel Food shopping Childcare Going out Other entertainment (e.g. DVDs) Toiletries Sport (eg, swimming/exercise) Cigarettes Car maintenance and petrol Other Occasional spending Total spending Money coming in Income Wages JSA / ESA Income support Housing benefit Part-time job Money from family Other Money left Total income Subtract your total spending from your total income. Total income Total spending = Money left Remember, if you end up with a minus number (eg, - 12) you ve gone over budget. 4 5

5 Managing debt Dealing with debts is one of the most difficult things we all have to do in life. You may think debts have disappeared out of sight can mean out of mind! It s important to learn how to manage debts properly, even if you find it really difficult, there is help and everyone is capapble of doing it. Follow these steps as a starting point to tackling your debts. 1 Make a list of all the debts you have. 2 Prioritise the debts some debts are more important than others, because the consequences of not paying them are more serious (for example, if the thing you re paying for, such as your car or your home, could be taken away if you do not keep up repayments). Treat any of these debts as a priority: rent arrears or mortgage council tax gas, electricity or other utility bills hire purchase court fines child maintenance payments 3 Contact everyone you owe money to let them know where you are (eg, in prison) and that you have a very low income or none at all. Produce a budget so you know if you can survive on the money you have coming in before any debts are repaid. For more help contact a free debt adviser details on pages Understanding credit and loan sharks Remember, there is no such thing as free money! Loan sharks are unlicensed money lenders who operate outside the law. They charge extremely high interest rates for lending money and often use threats and violence to scare people who fall behind with their repayments. Loan sharks often operate locally, advertising in shop windows, by word of mouth or by knocking on doors. Loan sharks often target people who are vulnerable and who believe that nobody else will lend them money. They can come across as very friendly at first, making it appear that they are just someone in the community who is eager to lend a hand. However, they often then start using aggressive tactics, like threatening family and friends with violence to frighten people and force them into taking on more and more loans to pay off previous borrowing. Be wary of the small print and any loan adverts with: no company name or postal address no mention of interest rates no information about the terms and conditions of the loan phrases such as no checks necessary or loan guaranteed There are other sources of borrowing available, such as Credit Unions. They aim to help you take control of your money by encouraging you to save what you can. Once you have a reliable record as a saver, you can apply to borrow money from them. Look at page 17 for the contact information for Moneymadeclear. This is a free service that can give you all the information you need about credit unions and tackling debt. 6 7

6 Making money decisions It is important you start looking towards your future and take charge of your money matters. It s important you start looking towards your future and take charge of your money matters. Practising some budget exercises, for example, will give you a better chance of being able to settle back into the community as quickly as possible. If you are worried about how you will cope with money, then it s important to produce a list of things you need to do and make contact with useful organisations. Use the Where to start list at the back of this guide as a starting point for what to do. By taking steps to plan for your release from prison you can show people that you are serious about changing your life for the better. Of course, you don t have to be in prison to start tackling debt you can do this anytime. Write a list and tackle the most important things first. Many resettlement units across prison and probation have specially trained staff to help you plan your resettlement back into society. They may run courses on resettlement issues or offer one-to-one advice. Keeping track of your money A bank account can help you to manage and keep track of your money. Most bank accounts provide services like cashing cheques, putting money in or taking it out and setting up direct debits or standing orders to make payments for free. Many companies prefer to pay wages into a bank account and it is also useful to have a bank account for any benefit payments you may receive. When you have a bank account you will receive regular statements which will show you exactly what has gone in and out of your account. You can also access this information by using a cashpoint to get a mini statement or checking your bank account online. Having this information at your fingertips can help you with budgeting and living within your means. There are three main types of bank accounts: basic account current account savings account For more information on bank accounts have a look at the organisations on pages They can help you to work out which is the right bank account for you. A bank account can help you to manage and keep track of your money. 8 9

7 Where to get more support There are a number of organisations you can contact for more information and advice. Some of the main ones are listed on the following pages. There are a number of references to website addresses get help to access these if you do not have a computer by asking friends, family or your personal officer. You can also visit the local library to use a computer. If you are in prison The security policy in your prison may mean you have to preregister telephone numbers before you can dial them, even if the calls are free of charge. You can ask your wing office for the relevant forms, if you need them. Some high security prisons will not allow pre-printed materials from the internet to be sent in by post, so again it is worth checking with your wing office beforehand. Each organisation has a colour key based on the advice they are able to offer, as follows: Bank Accounts Claiming benefits Credit rating information Insurance Personal identification Nacro s Resettlement Plus Helpline Nacro s Resettlement Plus Helpline provides an information and advice service for prisoners, ex-offenders, family and friends and others who need help with housing, jobs, education and training, and other matters affecting people with a criminal record. Nacro s Resettlement Plus Helpline 159 Clapham Road, London SW9 0PU Tel: (freephone) Barclays Money Skills Internet service providing information and tools specially developed to help you improve your money skills. Resettlement Service Finder Claiming benefits This is an internet-only service which provides information on housing, employment, substance misuse and other services in England and Wales for resettling ex-prisoners and supporting offenders in the community

8 Child Maintenance Options Child Maintenance Options is a free information and support service to help you as a separating or separated parent. The service is also open to anyone with an interest in child maintenance, including family and friends, and provides impartial information to help you understand your options even if you already have a child maintenance arrangement. Child Maintenance do not handle postal enquiries. Child Maintenance Options Telephone (freephone) Lines are open 8am 8pm Monday to Friday and 9am 4pm Saturday. Citizens Advice Bureau (CAB) Claiming benefits The CAB service helps people resolve their money, legal and other problems. They provide free and independent advice, information and help. They deliver advice face-to-face, by telephone and by . The CAB service has a network of nearly 500 bureaux working in over 3,000 locations, including 43 prisons. Check your prison library for local office address and telephone details or get in touch with the administration office at: Citizens Advice Myddelton House, Pentonville Road, London N1 9LZ Telephone The above contact details relate to CAB s administrative office and no advice is available here, but you will be able to get your local CAB office address and telephone details from them. Consumer Credit Counselling Service (CCCS) A charity that offers free, confidential advice and support on debt issues, including a structured programme on how to manage your finances. Consumer Credit Counselling Service Wade House, Merrion Centre, Leeds LS2 8NG Telephone (freephone) Credit Action A national money education charity which is committed to helping people manage their money better. Credit Action 2 Ridgmount Street, London WC1E 7AA Telephone

9 DVLA Personal identification You must replace your driving licence if it has been lost, stolen, defaced or destroyed. You can do this online, by telephone or by post. A fee will be charged to issue a replacement driving licence. You will need a credit or debit card to pay over the phone or online. You can also apply for a duplicate photocard driving licence using the D1 application form that is available from the DVLA form ordering service or Post Office branches. Send your completed application and fee to: DVLA Swansea SA99 1AB Telephone NeedANewOrUpdatedLicence/ Experian Credit rating information Experian is one of the UK s leading credit reference agencies, helping people to keep track of their credit commitments, credit status and credit history and to make better-informed decisions when they apply for credit, such as a new mortgage or credit card. CreditExpert PO Box 7710, Nottingham NG80 7WE Telephone (freephone) The General Register Office Personal identification You can get a copy of a birth certificate by writing to: The General Register Office PO Box 2, Southport, Merseyside PR8 2JD You can also write to the local register office where the birth was registered. You should provide as much information about the birth as possible. A fee is payable for all copies of birth certificates depending on the type of application you make and the details you provide. If you do not know your exact date of birth, a search will be made for one year either side of the year you give. If an entry cannot be traced, part of the fee paid will be kept and the balance returned. You can also apply online if you have full details of the birth and can pay the fee by credit or debit card. Telephone

10 HM Revenue and Customs (HMRC) Claiming benefits HMRC is responsible for collecting taxes, as well as paying tax credits and child benefits. Tax credits offer extra financial support to help with your everyday costs they are flexible and change whenever your life changes. If you need to write to HMRC, you should be able to get their local address from your prison library, the website or by calling the telephone number provided. Telephone Jobcentre Plus Claiming benefits Jobcentre Plus is a government agency supporting people of working age by: helping them claim welfare benefits providing work opportunities helping the transition from living off benefits to gaining successful employment. If you need to write to Jobcentre Plus, you should be able to get their local address from your prison library, the website or by calling, using the telephone number provided. Telephone Moneymadeclear Bank Accounts Insurance Moneymadeclear offers impartial information and tools to guide you through all aspects of money. Face-to-face advice is available in some areas call the phone line to book a free appointment. Telephone am-8pm Monday to Friday (excluding Bank Holidays) National Debtline A national telephone helpline for people with debt problems in England, Wales and Scotland. Their service is free, confidential and independent. They also have written self-help materials which they can send out for free. National Debtline Tricorn House, Hagley Road, Edgbaston, Birmingham B16 8TP Telephone (freephone)

11 Payplan A free debt management advice agency which can make repayment arrangements between clients who are in debt and the companies they owe money to. Payplan Ltd Kempton House, Dysart Road, Grantham NG31 7LE Telephone (freephone) Tax: see HM Revenue and Customs UK Passport Services Personal identification If you are a UK citizen, you can contact UK Passport Services at the address below to apply for a replacement passport. There are seven regional offices so, depending on where you live, you may get referred to another office. The Passport Adviceline is open 24 hours a day, seven days a week for all your UK passport needs (see the telephone number below). If you are not a UK citizen, you may be able to get advice from the Foreign and Commonwealth Office or try contacting your nearest embassy, consulate or high commission. Contact details should be available in your prison library. Peterborough Passport Office Aragon Court,Northminster Road, Peterborough PE1 1QG Passport Adviceline: Telephone (24 hours a day, seven days a week Turn2us Claiming benefits Turn2us helps people access the money available to them from benefits, grants and other financial help. The service is also availble to intermediaries, advisers, support workers, volunteer home visitors or welfare officers. Telephone am-8pm Monday to Friday UNLOCK, the National Association of Reformed Offenders Bank Accounts Insurance UNLOCK seeks to overcome the social and financial exclusion that reformed offenders face when trying to leave crime behind. To enable people in prison to open a bank account before release, they have worked to set up specific relationships between prisons and banks. They have also published a comprehensive list of insurance companies who can insure people with convictions. Their UNLOCKing Financial Capability resource is available to prisons and others who are looking to deliver financial-related information, advice and support. UNLOCK 35a High Street, Snodland, Kent ME6 5AG Telephone

12 It s important you start looking towards your future and take charge of your money matters. Where to start Here are our top tips to help you get ready to manage your money. 1 Gather together all of the documents you need to prove your ID, name and address. 2 Complete your education and training courses to improve your chances of getting a job. 3 Use your contacts among family and friends to find a job. 4 Sort out your debts with the help of free specialist advisors. 5 Gather together all of the documents you need to prepare a budget statement and stick to it. 6 Open a bank account to help with managing money coming in and expenses. 7 Make an appointment with the Jobcentre Plus representative at your prison to go through your benefits entitlement. 8 Sort out your housing with the help of friends, family and specialist housing associations. 9 Be realistic about how far the discharge grant will last and how you will survive until you have some money coming in from jobs or benefits

13 Barclays Bank PLC 2010 Registered office: 1 Churchill Place, London E14 5HP Registered in England. Registered No: 48839