What would you say to someone asking which of these bills and debts they should pay first? Housing Benefit overpayment £500 Catalogue £250 Credit card £600 Council tax £600? This is an increasingly common sort of situation in Britain. Citizens Advice has reported in August 2018 that £19billion is owed to essential bills including council tax and benefits overpayments. What … [Read more...]
It’s time to stop sending people to prison for council tax debt
A new report called "I can't believe we still do that" produced by Payplan and the Institute of Money Advisers (IMA) looks at the imprisonment of people for council tax arrears in England and Wales. Councils started court action to send 4,881 to prison in 2016-17. Their average debt was only £2,213. UPDATE: June 2018 -Good news! the Welsh government wants to end this and has started a … [Read more...]
Councils sent 2.3 million debts to bailiffs in 2016/7
Councils are using bailiffs more frequently to collect council tax arrears, parking tickets and other debts. Money Advice Trust has collected figures from councils across the country that show: councils referred 2.3 million debts to bailiffs in 2016/7 this is an increase of 14% on 2 years ago and c. 30% on 4 years ago. You can see individual council details using the map … [Read more...]
Which debts can you go to prison for not paying?
I don't think people should be sent to prison for not being able to pay a debt. It rarely happens, but it's important to know the sorts of debt where this is a possibility. About a hundred people a year are sent to prison for council tax arrears - here is a case where a mother was in prison for 40 days before being released. About 30 people a year go to prison for not having a TV license - … [Read more...]
What to do if you have problems paying your Council Tax
If you owe council tax, you are not alone. Council tax debts are now the most common type of debt that Citizens Advice sees. And in April 2018, the average council tax bill will be going up by £81. Council tax arrears increase dramatically if you ignore them because local authorities are faster to go to court and send in bailiffs than other creditors and this adds a lot of extra costs. This is … [Read more...]
Worried about rent arrears and being evicted?
Increasing numbers of people are worried about being able to pay the rent - research in March 2016 by Shelter, the housing charity, has found that a million people in Britain have visited their GP because of the stress and anxiety of affording the rent. Rent arrears are priority debts because if you don't do anything about them, you are very likely to be evicted. In 2015, there were 170 tenants … [Read more...]