Y o u r M o n e y
Your Money
Being in Debt is not a Crime
It’s How You Manage the Debt that Matters
So said the three Services’ Welfare ‘Colonels’ at a recent SSAFA-Forces Help meeting discussing the increasing amount of debt in the military community. Those at the meeting were briefed on the excellent Benefits and Money Advice Service initiative set up by The Royal British Legion, RAF Benevolent Fund and the Citizens Advice two years ago. But since the scheme was launched the majority of those taking advantage have been veterans. So why are serving personnel and their families not making use of the advice on offer?Dawn McCafferty reports.
T
he reasons, it seemed came down to two key factors: Firstly, there is a perceived stigma about admitting to being in
debt, even though debt is a fact of life for many. Moreover, many Service personnel worry that admitting to being in debt will have a detrimental impact on their career, perhaps even leading to administrative or disciplinary action being taken against them.
Again, the Welfare policy staffs were united on this front – as long as an individual demonstrates a willingness to listen to advice and to take the action required to get any debts back under control, the Services will be supportive. The main issue is ensuring that money worries do not impact on an individual’s operational effectiveness so, facing up to any debt issues and tackling them with the support of the experts, can actually help the Serviceperson focus on his or her primary role.
A further reason why serving personnel and their families may not be approaching the Scheme for support is that they may not be aware the service exists – hence the reason for this article!
The truth about household debt Putting the issue into context, statistics from Credit Action indicate that the average household debt in the UK is £8,920 (excluding mortgages) and
www.raf-ff.org.uk
£58,083 (including mortgages). Debt is common for many families and can be caused by a change in circumstances such as a job loss, a new baby, or any number of events that make those repayments that were easily affordable last month suddenly unaffordable this month.
The point at which it becomes unmanageable The main thing to do is to recognise the point at which you can no longer manage your debts within your existing budget and to seek advice early. There’s no point putting your head in the sand as the debts won’t go away and, ignored, will probably grow, eventually potentially putting your home and relationships at risk.
The Benefits and Money Advice Service has established forty-three fully trained Advisers in Citizens Advice Bureaus across England and Wales, with three more in Northern Ireland and seven in-house Royal British Legion Advisers in support. While many advice agencies across the country typically have long waiting lists for debt advice, advisers within the Benefits and Money Advice Service are dedicated to helping individuals who are currently serving or have served as well as their families, and so they can expect to receive a fast-tracked service. So why not make use of it?
What will they actually do? Well, in the strictest of confidence, the staffs will assess your financial position and help you identify priorities and establish any liabilities you have for debts. They will
help you prepare a budget to maximise your income (perhaps by helping you claim benefits you didn’t know you were entitled to) and minimise your expenditure in order to get the debts under control. They will help you identify a suitable long-term strategy to arrange payments or, if appropriate, assist with seeking a legal remedy to your debts. They will always follow up with written confirmation of their advice so you can refer to it as you progress through the recovery plan. And they remain on hand to advise you as you regain control of your finances.
You just need to ask So, thanks to The Royal British Legion, the RAF Benevolent Fund and the participating Citizens Advice Bureaus, free help is at hand for anyone serving and their families if you feel you need some advice on benefits and money. If you want to get in touch, you can call Legionline 08457 725725 (Mon-Fri, 10-4), the RAF BF Helpline 0800 1692942, or visit www.
adviceguide.org.uk A full list of the locations of the Advisers is listed at www.
britishlegion.org.uk
Readers may wish to note that our interactive workshops are exploring the issue of debt to see if we can evidence the scale and cause of any debt within the RAF community. All evidence gathered is anonymous and we hope the results will help validate the need for Schemes such as the one described above, perhaps even leading to an increased level of support if the demand is confirmed.
Summer 2010 31
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