Looking after your Money

Two important things to think about when looking after your money are making sure that it’s safe, and making sure that you can get hold of it when you need it.

Although many people don’t have bank or building society accounts, these are the safest and easiest ways to look after your money. Having the right kind of account can also allow you to pay your bills by direct debit, which can be cheaper than paying with cash or cheques. You can also have any pay and benefits paid directly into your account.

Q: How do I open a bank, building society or credit union account?

Choosing the right bank, building society or credit union account to suit your needs is the most important thing. Don’t get taken in by all the banks and building societies who offer free vouchers, gifts or prizedraws. Shop around and make sure that you make the decision that is best for you. Some questions you need to ask yourself are:

· Where is the nearest branch and can you get there easily?

· Can you use the branches in other towns and cities?

· Will you be charged for using the account?

· Do they have cash points?

· Will you be charged for using the cash point?

· Can you manage your money on the Internet or over the telephone?

· How often will you get a statement?

· Will you be given a cheque book and cheque guarantee card?

· What is the Interest rate on savings? The higher the better!

· Can you get an overdraft?

· If so, how much will the overdraft cost?

· Can you get loan?

· What is the interest rate on the loan? The lower the better!

Once you’ve found a bank, building society or credit union that you’re happy with you’ll need to open an account. You'll usually be asked to:

1. Fill in an application form

You can fill these in at the bank or building society. If you have any problems with the application form or aren’t sure what documents you need to bring, the bank, building society or credit union staff can help.

2. Bring proof of identity

You will need to prove who you are and where you live. Usually, the best documents to prove your identity are:

· Your passport; or

· Your driving licence; or

· ID card from work; or

· Pensions/benefit book; or

· Your Inland Revenue Tax Notification; or

· Residence Permit; or

· Your invitation letter from Jobcentre Plus or the Department for Work and Pensions to open a Post Office Card Account.

You may need to bring more than one document so make sure that you check how many you need before you go. Some banks need two or three.

Some of the best documents to prove your address are:

· A recent Council tax bill; or

· A recent utility bill (gas, electricity, water, telephone); or

· Inland Revenue statement; or

· Mail order/catalogue statement; or

· Pension/benefit book; or

· Car/home insurance certificate; or

· A bank, building society or credit union statement or passbook; or

· An original mortgage statement, a local council rent card or tenancy agreement;

· If you are a student, a letter from school/college

All of these documents need to be originals – most banks and building societies won’t accept photocopies.

Planning and Saving

Planning your money every week or month can help you to work out where it’s all going and where you might be able to cut back or start saving. This is even more important if you’re on a low income, as you’ll already be living on a tight budget without much room for manoeuvre.

Q: How much money do I get and where does it all go?

Once it’s in your hands, you’re in charge of your money. So it’s a good idea to keep track of it.

First you need to work out how much money you get each month (Income), and how much you spend (Outgoings).

This is the easiest way to start budgeting. You can see what things have to be paid, like rent and bills and what things you can choose to spend money on, like clothes and treats.

This can help you to keep control of your spending on luxuries and treats, so that you can afford the things you really need each month and save up for things you would like in the future.

The budget planner on the next page is a good place to start. Just fill in your income and outgoings and see how much is left at the end of the month. There might not be anything, or you might need to cut down on your spending wherever you can, but even a few pounds left over at the end of the month can be put into savings. Like the old ‘Penny Jar’ it can really add up!

Q: How can I start saving if there’s not much to spare?

It’s difficult to save money if you’re on a tight budget, and there will always be essential things that have to be paid for. But, there are ways to cut down your every day spending and even the smallest savings will start to add up.

Some ideas to get you started:

Give yourself a spending limit, for example, only take out the money you really need and make sure it lasts until the end of the week
Save up your loose change
Take time to look for bargains when you’re shopping
Try to buy what you need and not what you want
Save money on your bills by paying by direct debit and turning off appliances when you’re not in the room
Be firm with the demands of children and try not to get pushed into buying the latest toys and gadgets
Join the Credit Union and open a savings account
Choose a Sky package that you can afford
Consider cutting down or giving up smoking
Only make telephone calls when needed
Look out for money off coupons
Use bonus points and club cards when shopping
Don’t get too carried away with buying new fashions

See if you can increase your income by:

Speaking to your local job centre or careers advisor about training courses that could increase your opportunities
Looking for full or part-time work
Looking for a higher paid job
Taking on a second job during evenings or weekends to boost your income or pay off some debts
Finding out about tax credits and how you could save some money
Looking out for high interest savings accounts
Making sure you are getting all the benefits you are entitled to

Selling any unwanted things at a local car boot sale

Budget Planner

Income	Weekly/Monthly	Outgoings	Weekly/Monthly
Take home pay	£	Mortgage/rent	£
Benefits	£	Council Tax	£
Pension	£	Gas/Electricity	£
Other	£	Water Rates	£
		Telephone	£
Total:	£	Insurances	£
		Credit card Payments	£
		Loan Payments	£
		Vehicle running costs	£
		School Costs	£
		Food Shopping	£
		TV Licence	£
		Catalogues	£
		Going Out	£
		Other	£
		Total	£

Borrowing Money

When borrowing money you have a legal contract to pay it back.

When you get a credit card or loan you have to sign a credit agreement. Choosing to pay for something in small instalments is also a credit agreement.

This means you have signed a legal agreement between you and the lender. You need to read the credit agreement very carefully or get someone else to look through it to make sure there are no hidden costs and you know what you are signing up to.

If you don’t pay what you’ve agreed you have broken this contract. This means that you could end up in Court and could get a County Court Judgement (CCJ).

If this happens you will find it very difficult to get credit with low interest rates and from companies you can trust.

Q: What are the safest ways to borrow money?

Friends & Family

Borrowing from friends or family can be a good option, with no contracts, and no interest to pay. But there can be hidden costs to your relationships if the money isn’t paid back when agreed.

Banks can offer overdrafts and short term

loans to suit your circumstances and are generally reputable.

Credit Unions

If you join a Credit Union you can access good value savings accounts, low interest loans, and even low-cost white goods!

Low interest Credit Cards

Credit Cards are convenient, but look for the lowest interest rates you can find. If possible try to save a little money each month to pay off more than the minimum amount.

Hire Purchase

Hire Purchase is often the only option when buying expensive things like cars and furniture. But make sure you can afford the repayments and remember that the interest can be high!

Doorstep Loans/Loan Sharks

Avoid doorstep loans. Interest rates can be very high and if you can’t afford the repayments you may end up borrowing even more money to keep afloat!

High interest store cards

These look good when they offer a discount for opening the account, but be very careful! They can have high interest rates and offer poor value for money.

Dealing with Debt

If you overspend you end up in debt, owing money to friends, family, credit cards and banks. Most people have some debts, like mortgages and overdrafts. The trouble starts when you can’t keep up with the payments and the interest charges start mounting up.

This can make it difficult to pay for the other things you need and make you feel like you have to borrow more money to survive.

Remember, this isn’t the only option and can make things much worse. Have a look at the list of agencies from page 18, as there are lots of services available to help you manage your debt.

Why do we get into debt?

Peer Pressure – We all want to have the things that other people have, and to keep up with our friends and neighbours. TV adverts and magazines are full of things that we are told we need, and it can be hard to escape from these pressures.
Changes to your life – Moving house, having a baby, losing your job or becoming unwell can all increase your spending. Sometimes this means that you can’t afford the essentials and have to borrow money to get by.

What can you do?

If something happens so that you cannot meet your monthly payment, ALWAYS tell the finance company that you owe the money to. If the problem is only temporary then they should be able to work out a new payment plan that you can afford. It’s a good idea to try to pay something, however small.

Write a letter to the finance company telling them about your situation and remind them about anything you have spoken about with them before. Include with the letter a financial statement showing your income and outgoings. The Citizens Advice Bureau can help you with these.

If your finance company takes you to court to recover their money you will receive a summons from the court telling you what debt you owe. DO NOT IGNORE this. If you don’t respond to the summons, your case will go ahead anyway and the court will find that you are in the wrong, not the finance company.

The summons is usually delivered with a set of forms asking you about your personal financial situation. Complete the forms using the details from the financial statement that you sent to the finance company.

If you have any problems completing the forms ask for advice from your local Consumer Advice Centre or Citizen’s Advice Bureau.

Getting the best deals

Before you buy anything, stop and ask yourself:

Is it really worth the price?
Do I have the money?
Is this the best deal or can I get it cheaper somewhere else?
Do I really need it?

If the answer to any of these questions is NO, try to walk away. Sales and special deals can seem great at the time but we often end up taking home things that we don’t really need and sometimes never even use.

Don’t be afraid to haggle

Make an offer and it might be accepted. Good places for haggling are markets and car boot sales.

You can also haggle over slightly damaged or second hand goods, and last season’s stock.

Food Shopping

· Always write a list before you go and make sure you stick to it.

· Think carefully about special offers; 3 for 2 offers aren’t always as good as they look, but Buy One Get One Free can save you money

· Try cooking more than you need and freezing the rest for another day. It’ll be much cheaper than getting a takeaway when the fridge is bare.

· Try to get your fresh food from the local market, grocers or butchers. You can get more for your money and it’s often fresher than pre-packed foods

· Look at the top and bottom shelves when you’re shopping. These usually have the cheapest items, as the ‘brand name’ goods are often put on the middle shelves to catch your eye.

· Try the shop’s own brand as these are often cheaper than the well-known brands and just as tasty

Useful links

Directory of Advice Agencies

Age Concern Morgannwg - Tel: 01443 485505

35 Taff Street, Pontypridd

Drop In Centres and an Information Service that provides advice and support for older people. Age Concern gives benefits advice and assistance with form filling.

There are fact sheets on benefits on Age Concern’s website: www.ageconcern.org.uk

Carers UK - Telephone 0808 808 7777

Carers can obtain a benefits check.

Citizens Advice Bureaus (CABs)

Web: www.citizensadvice.org.uk

A free, independent, and confidential advice and information service. Advice includes welfare benefits, debt counselling, health and housing issues. If the Citizens Advice Bureau staff aren’t able to help they will help direct you to the right place.

Cynon Valley CAB – Tel: 01443 475633

The Old Library, Duffryn Road, Mountain Ash.

Outreach Service – Hirwaun YMCA, Manchester Place,

Hirwaun, Thursday 10:15 – 12:15. Teifi House, Maerdy, Thursday 16.00 –18.00. Penrhys Community Centre, Thursday 13.00 – 15.00.

Get It Sorted – Phone 01443 475948

Money Management and Debt Project

Pontypridd, Taff Ely and Rhondda CAB -

Tel: 01443 409963, 5 Gelliwastad Road, Pontypridd.
Advice Line 10am – 1pm Monday, Wednesday, Thursday, Friday. 10am - 4pm Tuesday.

Open Door - 10am–1pm Monday - Friday

Community Advice Service - Tel: 01443 409963

The Rhondda and Taff Ely Citizens Advice Bureau also run a service at venues in the community for example, Tylorstown Welfare Hall, CWMNI Treherbert, Trerhondda Chapel Ferndale, Treorchy and at surgeries in Tonyrefail, Llanharry and Rhydyfelin.

CAB Telephone Advice Line Wales - Tel: 0845 1203733

This advice line is part of the CAB, concentrating on people in rural areas

Community Legal Service - Tel: 0845 345 4345

Website: www.clsdirect.org.uk

A free bilingual service providing information, help and advice on common legal problems, including tax, debt, housing and education. Provides up to 30 minutes free legal advice.

Consumer Advice Centres

Provide free, confidential help and advice on consumer problems. You can gain advice on legal matters including a range of civil and criminal issues. Home visits for people with special needs.

Cynon – Telephone: 01685 878888

One 4 All Centre, Rock Grounds, Aberdare

Rhondda – Telephone: 01443 778959

One 4 All Centre, Station Road, Treorchy

Taff Ely – Telephone: 01443 484469

10 Church Street, Pontypridd

Consumer Direct Wales – 0845 404 0506

Consumer Credit Counselling Service

Telephone: 0800 1381111

Provides free advice on money concerns, debt and managing finances.

Cwmni – The Bolder Project - Tel: 01443 778782

Help and advice for people over 65 to apply for benefits.

Department for Work and Pensions

Website: www.dwp.gov.uk

People over 60 years ofage for whatever benefit they wish to claim should contact The Pension Service - Tel: 0845 60 60 265, Text phone: 0845 60 60 285

People under 60 years ofage who wish to claim benefit should contact Job Centre Plus - Tel : 0845 601 3614, Text phone 0845 605 2612, Welsh language: Tel 0845 605 8135, text phone 0845 607 2302

Website: www.jobcentreplus.gov.uk

DIAL – Llantrisant and District

Telephone: 01443 237937, The Ambulance Hall, Birchgrove, Llanharry

Benefits advice and help with claim forms for the disability living allowance.

Dragon Savers Credit Union

107 Bute Street, Treorchy

Tel No. 01443 777043

Gilfach Goch Community Association

Telephone: 01443 675004, Gilfach Goch Community Recreation Centre, Cambrian Avenue, Gilfach Goch, Porth

Provides information and advice on benefits

Henreforgan Tenants Association

Heol Glyn Goch, Hendreforgan Gilfach Goch

Initial free advice on welfare benefits, debt, housing and legal issues. Thursday 9:30am – 12pm

Housing Advice Centre Rhondda Cynon Taf

Telephone: 01443 485515, 10-12 Gelliwastad Road, Pontypridd, CF37 2BW

Provide advice and information housing issues. For specific information on housing benefit and Council Tax - Telephone: 01443 681081

National Debt Helpline

Telephone: 0808 808 4000

Website: www.nationaldebthelpline.co.uk

Older Peoples Welfare Rights Project - Tel: 01443 668888

Maximising Income Project for RCT resident’s aged 50 and over.

One 4 All Centres

Rock Grounds, Aberdare

Sardis House, Pontypridd

Treorchy Library, Treorchy

Open 8:30am to 5pm – no appointment needed.

Payplan – Tel: 0800 085 4298

An independent agency offering a FREE service to people in debt.

Website: www.payplan.com

Rhondda Volunteer Information Centre - Tel: 01443 432942

Rear of Rhondda Community Services Office, Berw Road, Tonypandy, CF40 2HH

General information and benefits advice

Rhondda Cynon Taff Local Health Board

Information and Advice Services

For residents of Rhondda Fach and Rhondda Fawr

A referral is needed from a GP, Health Visitor, Midwife, Practice Manager or other health worker.

CWMNI Office Treherbert, Penyrenglyn Project or On Track in Tylorstown can also refer.

Offer advice and information on social, welfare and financial issues.

Shelter Cymru Helpline - Tel: 0808 800 4444

Specialist Housing Advice, also at various outreaches in Rhondda Cynon Taf. For locations Tel : 029 20 556 120

Speak Easy Advice Centre - Tel: 029 2019 0065

Porth Christian Centre, Pontypridd Road, Porth

For legal advice on debt and welfare benefits

Telephone advice lines

Benefits Enquiry Line

Tel : 0800 882200; Textphone 0800 243355

Disability Living Allowance / Attendance Allowance

Tel: 08457 123456; Textphone: 08457 224433

New Tax Credits Helpline

Tel : 0845 300 3900; Textphone: 0845 300 3909

Pensions Direct

Tel : 0845 301 3011 Textphone 0845 301 3012

Veterans Agency

Tel : 0800 169 2277; Textphone 0800 169 3458

Websites

Barton Hill Advice Service provides guides for completing Attendance Allowance and Disability Living Allowance forms. Website: www.bhas.org.uk

The Inland Revenue’s site provides information and assessment benefit checks for tax credits.

Website: www.inlandrevenue.gov.uk

Financial Services Authority provides consumer information on Banks and Building Societies.

Website: www.fsa.gov.uk

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Community Groups

Local Community Project - Social Justice