MONEY PLAN. Address: Contact details: Number of people in my household:

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1 MONEY PLAN.. Address:..... Contact details: Number of people in my household:..... You can use this budgeting tool to help you sort out the money that you have coming in and going out each month for your household. You can show this information sheet to the people you owe money to, to help you prioritise your debts and, if needed, come to an arrangement to pay back what you owe.

2 Money Plan Money Coming In Working out monthly amounts Everyone receives money at different times and intervals. As most wages and bills are paid monthly and welfare benefits are moving to monthly payments, we are encouraging people to work out a monthly budget. Here is a calculation to help with this: If you have a weekly payment, multiply this figure by 52 and then divide it by 12. If you have a 2 weekly payment, multiply this figure by 26 and then divide by 12. If you have a 4 weekly payment, multiply this figure by 13 and then divide by 12. If you have any difficulty working out your monthly income and outgoings, talk to an adviser. Income Actual Amount Received How Often (weekly / fortnightly, 4 weekly / monthly) Monthly Amount Wages / Salary for yourself Wages / Salary for other people in your household Working Tax Credit Child Tax Credit Universal Credit Child Benefit Housing / Council Tax Benefit Other Benefits 1 Other Benefits 2 Other Benefits 3 Any other money: Total Monthly Money In

3 Money Plan - Money Going Out Outgoing Money Out How Often Monthly Amount Housing costs (rent or mortgage) Other housing costs (service charges, insurances) Council Tax Electricity / Gas / Oil Water Food / Housekeeping Education Costs: Stationery / Clubs / School Dinners / Kit TV Licence Telephone, Broadband / Mobile Phones / Sky / Netflix etc. Health (opticians, dentist, prescriptions) Clothing / Toiletries / Make- Up Pet Costs, (food, insurance) Christmas / Birthdays Days Out / Holidays / Socialising Public Transport (train / bus / taxi) Car Costs ( Leasing / Hire / Insurance / MOT / Repairs / Car Tax / Petrol / Diesel) Priority Debts (See Appendix 1)

4 Non-Priority Debts (See Appendix 1) Total Monthly Money Going Out Managing Your Money Total Monthly Money In Subtract Total Monthly Money Out Balance If You Have a Negative Balance 1. Identify your priority vs non-priority outgoings 2. Make savings where you can 3. Make a plan of action for dealing with debt 1. Priority vs non-priority outgoings The debts you should pay first are called priority debts. (This would be things like, rent or mortgage, utility bills, income tax, council tax, child maintenance, TV licence and court fines). These are not necessarily the largest or most expensive debts that you have but they may have other consequences like; losing your home, being made bankrupt, having your heating or lighting cut off or receiving a court summons. Non-priority debts include: credit card, store card debts, payday loans, catalogue, home credit or in-store credit debts, overdrafts, bank or building society loans, personal loans and money borrowed from friends or family. 2. Making Savings Having worked out your priority and non-priority outgoings, think about the things that you have to have, versus the things that you might like to have, but you could manage without. Using a blank monthly money plan, re-do your budget, taking out the things that you can do without. See what balance you have left. If your balance is still negative, move to Step Making a Plan of Action for Dealing with Debt You now need to think about your options. These will largely be determined by a range of factors: Whether you own your own home (there is a risk to your home from taking some debt management steps, such as bankruptcy) What is your employment (there are some occupations that are negatively affected by particular debt management solutions, such as bankruptcy) Are you retired or close to retirement as some debt solutions may affect your

5 pension income? Most debt solutions will affect your future credit scoring, but some more than others. Your Options Administration Order If you have less than 5,000 of debt and have at least one County Court Judgement, a payment plan can be arranged through the court to give you protection from your creditors. This was a common form of debt solution, but now the newer Debt Relief Order is cheaper and faster to arrange. Bankruptcy Bankruptcy is a form of insolvency and is normally only suitable if you can t pay back your debts in a reasonable time. Any assets that you have, such as your house or car, will usually be sold to pay off your debts. This means if your assets are worth more than your debts it is unlikely to be the best option for you. Debt Management Plan (DMP) A DMP helps people to manage their debts when they can t afford their contractual payments. It is usually arranged by a third party on your behalf, to consolidate your debt payments and help you to deal with your creditors via a monthly payment based on the amount you have available. Debt Relief Order (DRO) A DRO can help you write off debt that you re unable to repay in a reasonable amount of time. This is a low cost alternative to bankruptcy to help people who have a low income and a small amount of unsecured debt. You need to owe less than 20,000 in unsecured debts, not be a homeowner or have more than 1,000 in assets and must have less than 50 per month left over after you have paid everything. Equity Release Equity release would be an option for people who are in or near retirement and own their own home. Monies can be released from the equity held in the property to pay debts. First seek advice from an Independent Financial Adviser. Individual Voluntary Arrangement (IVA) An IVA is a legally binding arrangement where you make reduced payments to your debts over a 5 or 6 year period. It is commonly used by people who have a high level of non-priority debts they are unable to pay back in a reasonable amount of time and also have assets such as a car or a house that they do not want to have at risk of being sold to repay their debts. First seek advice from an insolvency practitioner. For more information and support on what you need to do next, contact our DIAL team. Tel: advice@disabilitycornwall.org.uk Note: DIAL, as part of disability Cornwall & Isles of Scilly Ltd are not contracted or qualified to provide formal financial advice. This tool is intended as a guide only and

6 we may need to signpost or refer you for external professional financial / debt support. Appendix 1 PRIORITY DEBTS Housing costs, Council Tax, utilities, court fines, child maintenance. Type of debt Name of Creditor Total Amount Owed Rent Arrears Mortgage Arrears Council Tax Arrears Gas Arrears Electricity Arrears Fines Maintenance /CSA Arrears Other Total Monthly Amount Being Paid NON PRIORITY DEBTS Phone bills, bank accounts, loans, credit cards, store cards, mail-order, friends and family. Type of Debt Name of Creditor Money owed Monthly Amount Being Paid Total