Self Help Debt Pack

If you are struggling don’t panic! Help is available.

Types of debt

To start getting out of debt you must :

• List all your debts including the name and address of creditors
• What are your priority and non-priority debts
• Contact your creditors

Priority Debts

All debts are important. Some debts carry severe penalties. The table below will list your priority debts.

Water Bills

If you are having trouble paying your water bills you must contact United Utilities to arrange affordable repayments. As with any debt, contact them as soon as possible to let them know your circumstances.

There are some other schemes available for certain groups of people:

Water Direct

This scheme is run with the Department of Work and Pensions (DWP). This will help people who have arrears on their water bills and are in receipt of income support, job seekers allowance and pension credit. The scheme allows customers who have a minimum of £50 arrears to pay a fixed amount towards their arrears and the full amount towards their current year’s charges directly from their benefit. This helps many customers with budgeting and managing their water and wastewater accounts.

WaterSure

This scheme is for water-metered customers only. If you use large amounts of water and receive benefits or tax credits, or have three or more children, or have specified medical conditions you may be entitled to financial assistance. Click here for further information and if your eligible, how to apply.

United Utilities Trust Fund

The trust fund is not run by United Utilities but managed by independent trustees and is for people with genuine financial problems. The fund is to help people to get back on track by providing a grant towards their debt. To apply click here or ring 0845 179 1791.

Arrears Allowance Scheme

If you are in a relatively small amount of debt but prefer to work with United Utilities rather than the Trust fund you may be able to join the Arrears Allowance Scheme. The scheme is there to support the ongoing payment of water charges by matching a customer’s commitment to their arrears. If a customer accepted onto the scheme makes a guaranteed payment over 13 weeks and if all payments are successfully made then United Utilities contributes the exact same amount to the customer’s arrears. The scheme is not applicable to all customers but if you think you may qualify and want to be considered for the scheme ring 0845 746 2034, or contact CAB - click here - who will help you be considered for the scheme.

Please note United Utilities are not allowed to disconnect your water supply. HOWEVER, this does not mean you should not pay your debt.

If you are on a water meter and want to reduce your bills go to the Money Saving Tips page and scroll down to Energy and Water Saving tips.

Non-Priority Debts

Bank Loans, Overdrafts and credit cards

• Check the name on the bill. Only the person who signs the agreement is responsible for the debt. If two people or more have signed the agreement then you are all held responsible for paying the full debt, even if you are no longer together.
• Request an interest freeze – see your bank or lender.
• Make an offer of payment you can afford.  You will usually be asked to complete a statement of your finances before they will agree to payments lower than the usual repayments.

Contact with your creditors (people you owe money to)

• If you are having problems contact your creditors immediately.
• Write or telephone them explaining your situation.
• If you telephone make a note of the date and time of your call and the name of the person you speak to.
• If you write, put the date on any letters and keep copies of them

Making payments - Priority Debts

Before you make any payments : 

• make a list of all your incomings and outgoings so you can see how much money you have left over at the end of each week or month.
• Use our income and expenditure budget form(.pdf,14KB) to help you.

From your income and expenditure budget form you can see how much money you have left each week or month.

Now offer to pay your priority debts (rent, council tax, mortgage, fuel, etc).

Here are some sample letters you can use :

• Sample letter 1(.pdf,4KB)
• Sample letter 2(.pdf,5KB)

If you feel you have no money left – check you figures and contact CAB(contact details on our helpful contacts page).

Remember :

It will take time to pay off but lower, regular payments are better than high payments you can’t keep up.

Making Payments - Non Priority Debts

All other debts are non-priority debts. If you do not have any spare money to offer these creditors – check your figures and contact CAB (contact details on our helpful contacts page).

If there is money left over contact your creditors to make an arrangement to pay by affordable instalments. Here are some sample letters you can use to contact creditors :

• Sample letter 1(.pdf,4KB)
• Sample letter 2(.pdf,5KB)

Remember they will take time to pay off but lower regular payments are better than large payments you can’t afford

Top tips for dealing with debt

DON'T IGNORE IT - IT WILL ONLY GET WORSE

• Pay your priority debts first – there can be serious consequences of you do not pay these debts (See Priority Debts table further up the page).
• Work out a budget – work out how much money you have coming in and going out (income and expenditure budget form(.pdf,14KB) . Check you are getting all the benefits you are entitled to and whether you can save money on everyday items (click here for our Money Saving Tips).
• Get in touch with the people you owe money to and explain your situation.
• Don’t borrow money to pay off your debts – you will end up paying back even more.
• Always keep copies of letters you send or receive.