The Advice Process
Although the exact level of support you may need will depend on your individual situation, we’ll use the following process to advise and support you towards becoming debt free.
01
Understand Your Situation
The first thing we will do is meet you so that we can fully understand your situation and circumstances, so our first task is simply to listen. We may need to ask you for more information or paperwork - the more we understand about your situation, the more we will be able to help. The advice that we give can only be based on what you tell us about your situation
02
Your Income and Expenditure
Any advice begins by looking at your income. This may include helping you apply for / appeal any benefits you may be entitled to as well as looking at other options to bring in extra income.
We will then look together at all your bills and spending and where possible we will highlight any savings you could make.
03
Look at Your Debts
The next stage will be to look at your debts and sort them into priority and non-priority debts. Priority debts are those that have the biggest consequences if you don’t pay them - these will be dealt with first. We will also advise you about any urgent situations such as legal action, bailiffs, or threatened eviction.
04
Create a Financial Statement
If appropriate, we will help you create a financial statement – a simple record which can be used when speaking with creditors so that they are aware of your exact financial circumstances.
05
Discuss Your Options
We will discuss with you the best options for your situation. If your circumstances mean you can’t repay your debts within a reasonable timescale, we may look at insolvency options. The most important thing however is to make a plan that works for you.
06
Make a Plan
We will help you put a plan in place which might include negotiating with your creditors, asking them to hold interest, setting up an affordable payment plan, dealing with any legal action, or looking at other steps that you can take. Whatever is decided, we will help you put your plan into place.
Your options
Everyone’s journey out of debt is different, and there may be a number of potential options available to you.
Working with Crosslight
We will support for long it takes. But before you start working with us, there are some important things you need to know about our service.
Your Credit Rating
If we or you write to the people you owe money to and let them know you are having difficulty, your credit rating may be affected. Your credit rating will also be affected if in due course your payments are reduced or stopped. In both cases, this information will remain on your credit record for up to six years and this could make running a business, getting a mortgage, renting somewhere to live, or getting credit, more difficult.
Priority Debts
Whenever we give advice about your debts, we will treat 'Priority Debts' differently to other types of debt and will always advise that these types of debts are repaid first, even if that means that other types of debts cannot be repaid as fast/at the same time. Priority Debts are things like Rent/Mortgage, Council Tax, Utilities, Court Fines, Tax debts, Benefit Overpayments, and Fines.
Ongoing Payments for your essential bills
Even if you have arrears, it is important that you continue to make payments for your ongoing rent and/or mortgage, council tax, gas, and electricity in particular. These are priority items and it is very important that you make sure they are paid on time and in full – paying different amounts every so often is not acceptable, especially when it comes to your rent (and may result in possible eviction proceedings being started). If you think there may be problems in making these payments, you should contact us immediately if you haven't mentioned it already.