[Rebecca]

Are you struggling to make ends meet? Let’s face it… with the cost of living crisis still very much around, for a lot of us, it can make us worry about money! This can cause a lot of added stress to daily life.?

We want to let you know we are here for you on the Utilita Community and that you are not alone! ???

To mark #DebtAwarenessWeek, we have teamed up with Step Change to answer your most pressing questions about debt & the support available.

All the answers to your top & most popular questions are in the comments box below! ?

[Rebecca]

Hi all, you asked and we answered the most popular questions, please read on to find out more!


Am I liable for my partners’ debt too?
If your partner has debts solely in their name, you are not responsible for their debt even if you live at the same address, are married or are in a civil partnership. Any debts or financial obligations that your partner has in their name will stay in their name only, and responsibility for their debts does not pass to you.

However, if you and your partner have joint debts such as a joint loan or bank account, then you’re both jointly responsible for repaying the debt – regardless of who spent the money or what it was spent on.

It’s worth nothing that credit cards can’t be taken out in joint names, there is always a main cardholder who is responsible for paying off the credit card debt. Some credit card providers allow an additional cardholder who will be given their own card to use, but this person isn’t legally responsible for paying towards them debts.

You can find out more on our website about joint debts: Joint Debts & Who's Liable. Free Debt Advice. StepChange


What support is available that could help me clear my debt? What happens if I can’t clear my debt?
The consequences of not paying back your debts differ depending on what type of debt you have – priority debts have more severe consequences than non-priority debts for example.

If you’re struggling to clear your debt we’d recommend you contact us for debt advice – you can do this online at www.stepchange.org. During debt advice we’ll go through what you owe, your income, and your monthly spending to create a budget, and then we can look at which debt solutions may be suitable for you.

There are lots of different options and ways to resolve a debt problem – at StepChange we offer a wide range of solutions and you can find out more about these on our website.

It’s really important to remember that every debt solution has different risks and benefits, and that what’s right for one person may not be right for another – so please make sure you get free and impartial debt advice before taking up a debt solution.


Can I ask for breathing space if I can’t clear my debt by the required date?
Breathing Space, officially called the Debt Respite Scheme, is a government scheme launched in 2021 which could help relieve some of the pressure and stress of being in debt.

If you’re eligible, your creditors won’t be able to add interest or fees to your debts or take enforcement action for 60 days – you’ll still need to keep making your regular payments if you can afford to. This can give you time to focus on getting debt advice and setting up an appropriate debt solution, without worrying about being chased for payment or incurring additional charges.

Breathing Space is only available in England and Wales – there is a similar scheme in Scotland called the moratorium period, which has different benefits and considerations.

If you’re worried that you can’t clear your debt we’d recommend getting in touch with us for debt advice, and we can also check whether you’re eligible for breathing space as part of this process. You can get started online at www.stepchange.org. More information about Breathing Space is available at Breathing Space. Debt Respite Scheme Advice. StepChange


Can debt be written off free?
There are a lot of adverts out there promising to write off your debts – however, please be wary of these. They are often promoting debt solutions that make the most money for the companies advertising them, and may not be in your best interest.

There are some options, called insolvency options, that can write off some or part of your debts. The types of insolvency solution available to you depend on where you live – there are different insolvency solutions available in Scotland compared to the rest of the UK. However, insolvency isn’t suitable for everyone and there are risks with every type of solution – with an insolvency solution, for example, this will have a negative impact on your credit score and there may also be other fees you have to pay.

When you get debt advice, we’ll ask some questions to understand your situation, and recommend a suitable solution for your individual circumstances. If you’re struggling, please get in touch with us at www.stepchange.org


I’m really struggling with payments and have debt on both my energy meters. I’m struggling to live off my wages and have turned to food banks – what are my options?
With the rising cost of living and essentials like food and energy, many people are struggling to cope financially, so please know you’re not alone, and there are steps you can take to improve your situation:

Talk to someone: Firstly if you have debt on your energy meters, you should talk to your energy provider in the first instance, as there may be additional support they can offer you to deal with your bills. Your energy provider may also refer you to a debt advice provider such as StepChange, but you don’t have to wait for a referral – if you are struggling with debts you can contact us any time at www.stepchange.org.

Check your benefits: Many people aren’t claiming all the benefits they’re entitled to – our online benefits calculator is quick and easy to use and could help you identify additional income you could claim.

Help in an emergency: If you are facing a financial emergency there is also additional support you may be able to access including help from your local council or grants and trust funds. We don’t recommend payday loans or other forms of high-cost credit – it may seem tempting in the short term but can leave you in more financial trouble due to high interest rates and charges.


How should you prioritise paying off debt if it’s spread across multiple areas?
When you’re juggling multiple debts it can be hard to know which debts to pay first. There are some bills, or ‘priority debts’, which should be the first priority as the consequences of not paying them are greater than the consequences of not paying others.

What is classed as a priority debt may differ slightly depending on where in the UK you live but some of the most common ones, which are a priority wherever you live, are: your gas and electricity bill, rent or mortgage and council tax or rates. You can find out more about priority bills and see a full list of priority debts depending on where you live over on the StepChange website: Priority Debts & Which Bills To Pay First. StepChange


If you’re struggling with debt, what is the best way to start paying it off?
The best way to start tackling your debt will really depend on your unique circumstances but for anyone worried about their finances, a good place to start is making a budget.
It can be difficult to face up to your financial situation, but by making a budget you’ll get a clearer idea of what you owe and how much you can realistically start paying back. If you contact StepChange for debt advice we’ll start by helping you build a monthly budget, and then use this information to see which options, called debt solutions, you might be able to access.

You can read our guide to putting together a budget on our website, and if you’re ready to get debt advice you can use our online tool at www.stepchange.org


What should I know about interest and debt?
Interest is added to almost all debts, and extra charges are added to many debts if you don’t pay on time. Interest can be charged at the same amount or it may be ‘variable’ and change over time. However, your creditors can’t increase the rate of interest because you’ve missed payments.

Interest is usually shown as the annualised percentage rate – or APR. This shows how much the interest would increase your debt in a year – for example an APR of 100% would mean your debt would double in a year. The higher the APR, the more expensive it is to borrow. Creditors often show ‘typical’ APR in their adverts, but this isn’t necessarily the interest rate you would get – you may be charged more, for example, if your credit file shows you have previously missed payments.

If you’re struggling to keep up with interest and charges on your debts, we’re here to help you – visit www.stepchange.org to use our online debt advice tool. We can help you put together a budget which will show what you can afford to pay towards your debts.

You can find out more about interest and charges on debts on our website.


What should you do if you’re in debt but want to start saving? Should you prioritise paying off debt or adding to a savings pot?
It’s a good idea to have money set aside for an emergency savings fund – a good rule of thumb is to try to have at least three months of living expenses set aside. However, if you’re in debt it can be difficult to get started with savings.

While it’s good to start saving as soon as possible, before you start saving you should make sure you pay off any priority debts. These include your mortgage or rent, child maintenance, or council tax – we’d also recommend paying back any high-interest debts before you start saving. You can find more tips on saving on our website but if you are worried about your debts, you may think about getting debt advice – you can do this online at www.stepchange.org


Will the cost of living crisis affect my ability to pay off debt? What can I do if I’m worried about it?
The cost of living crisis is having a huge impact on people across the UK, and our research and conversations with clients show lots of people are worried – so please know you’re not alone. It’s hard to say whether the crisis will have an effect on your ability to pay off your debt without knowing about your financial circumstances, but if you’re worried about your debts we’d recommend getting in touch with us.

Our online guides could help you to cope with the cost of living, including rising energy costs and emergency funding if you need it. If you’re worried about a debt problem please get in touch with us at www.stepchange.org to see how we may be able to help.


Will I ever pay off my student loan debt and should I be worried about the potential student loan increase?
Without knowing when you took out your student loan, how much you owe and how much you earn, it’s difficult for us to say whether you’re likely to pay this off. ‘Old style’ (if your course started before 1998) and ‘new style’ (after 1998) loans have different structures, and the overall amount you owe will also depend on when you started your course. However, ‘new style’ loans are written off either when you reach a certain age or a certain amount of years after your first payment was due – this differs depending on when and where you took out the loan, but you can find more details on our website.

If your student loan deductions are being taken from your wage and it’s causing you to struggle, we can help you review your budget to stay on top of your other expenses, and if you have other unsecured debts you may be eligible for a debt solution to deal with these. We’d recommend visiting www.stepchange.org to see how we could help.