MORE people in Swindon struggling with unmanageable debts are turning Citizens Advice Swindon, leading the charity to call for people to seek help before they reach crisis point.

Citizens Advice Swindon has helped 1,169 people with debt issues in the last 12 months. Of those, 236 people sought advice on debt relief orders — a rise of 54 per cent compared to the previous 12 months.

Nationally, more people have been helped with a debt relief order (DRO) since the amount of debt covered rose from £15,000 to £20,000 last October.

Debt relief orders are a last resort for people who have exhausted all options for repaying their debts and won’t be able to pay in the near future.

They work by pausing most of your debts for a year so that your creditors can’t chase you for repayment. At the end of the year, unless your circumstances change your debts will be written off.

Debt write-offs can have a serious impact on people’s credit rating which makes it difficult to take out more credit agreements or even open a new bank account.

Citizens Advice Swindon is now urging people who are struggling to keep on top of their debts to seek advice early on, so they have the best chance of repaying their debts and avoiding debt write-offs.

Claire Newport, chief officer at Citizens Advice Swindon, said: “If your finances are getting on top of you and you’re struggling to pay your debts it’s crucial you seek support right away.

“Citizens Advice Swindon can help you work out what you can afford to repay, and negotiate with your creditors on how you will pay them.

“We can also offer advice on how you might be able to make savings, such as switching to a cheaper energy deal or mobile phone provider.”

Here are Citizens Advice's top eight tips for sorting out money issues

  • Work out how much you owe - make a list of the companies you owe money to, and add up how much they’re asking you to pay each month. If you don’t have your most recent statements, contact the company to find out what you owe. 
  • Identify your priority debts - your rent or mortgage, gas and electricity and council tax are called priority debts as there can be serious consequences if you don’t pay them. These should always be paid first. Separate these out and work out how much you owe to each.
  • Work out how much you can pay - Create a budget by adding up all your essential living costs like food and housing, and taking these away from your income. Any money you have spare can be put towards your debts. Citizens Advice budgeting tool can help.
  • Paying urgent debts - You may have several priority debts and can’t pay them all. Contact all your creditors to find out if you can negotiate on how much you pay, or when you pay them. You will get an impression of who needs paying now, and who is prepared to wait. Always pay priority creditors who are taking action against you first.
  • Paying non-urgent debts - If you have any money left over after paying priority debts, you could consider getting a free debt management plan. You’ll make one monthly payment to the plan provider, who will handle paying your creditors. Alternatively, contact your creditors and offer them what you can afford to pay.
  • If you can’t pay your debts - check your outgoings and see if you can make savings: Switch energy suppliers - switching energy suppliers can save you hundreds. To work out if you’re on the best deal or can get a better one elsewhere, use the free Citizens Advice energy comparison tool: energycompare.citizensadvice.org.uk 
  • Check your broadband and mobile phones deals - if you’re near the end of your contract, see if you can find a cheaper provider.
  • Get a water meter - smaller households may be able to save money by moving to a water meter. With a meter, you only pay for what you use. Work out if you could save by visiting www.ccwater.org.uk

For further advice on managing debts, contact Citizens Advice Swindon on 03444 994 114, email advice@swindon.cabnet.org.uk or drop in to one of the Citizens Advice offices on Sanford House (College Street entrance) Monday and Wednesday, 9.15am–4pm or Tuesday, Thursday and Friday, 9.15am–1pm.

Alternatively visit Cavendish Square on Tuesdays or Thursdays from 10am until 1pm or Pinetrees Community Centre on Mondays and Wednesdays from 10am until 1pm.