Low paid and penniless

Citizens Advice Bureau

3:46pm 22nd January 2014
(Updated 9:24am 23rd January 2014)

The latest unemployment figures show that fewer people are out of work.

However, there is growing evidence that having a job doesn't always pay the bills.

According to a recent report, more than half of people living in poverty are in working families.

When the situation becomes more desperate, some resort to payday loans which have very high interest rates.

The Citizens Advice Bureau has seen an increasing number of people coming forward with money problems.

Stray FM's James Stanley took out a loan several years ago and struggled to keep up with repayments:

  Harrogate debt specialist Heather Brock explains what help is available:

  Other charities are bracing themselves for more enquiries as millions of families receive their post-Christmas credit card bills.

The Debt Advice Foundation is keen to dispel what it calls "money management myths":

1) It's not that hard to keep the money straight. Yes it is. Running a family budget is like running a small business. So give yourself a couple of hours, sit down with a pad or a spreadsheet and list all the bills you have to pay every month to keep the family household going. Those are the first priorities. Then list hire purchase payments (which are secured against the purchases, such as your car), then the unsecured debts (credit cards and personal loans), then all the rest - paid-for TV services, club memberships and online subscriptions. Now add up your income and that's what a budget looks like.

2) It's more important to pay credit card and loan debts than the bills. Wrong. Paying the bills is what keeps a roof over your head, the house warm and food on the table. You should make these payments before anything else.

3) Online and mobile direct payments are very convenient. Convenient for the seller, not always for you. Mobile shopping is the fast-growing area of retail. Do you make your best money decisions sitting on the bus looking at your phone? Probably not.

4) Banks are there to help you. No, they are there to make money, to sell you things and to persuade you to buy things, just like any other shop.

5) Banks and credit card companies are more or less the same. No they're not. The money in your current account is yours and you may get interest or cashback deals. A credit card is always a debt. If you're not careful it can be forever, not just for Christmas.

6) Credit is a service. No, credit is a product that you pay for, which may be useful or may be a dreadful waste of money.

More information from the Debt Advice Foundation here.

Share This Story

Submit this page to reddit
Most read
ken

Money for Yorkshire Air Ambulance stolen from Harrogate home

Thousands of pounds were stolen from an 85year old fundraiser in Harrogate

Driver fled after collision near Harrogate

Police warn 'we are on to you', after driver flees Harrogate collision

Woman left injured in her car after crash on Saturday night.

Newer article

Engineering Yorkshire: A picture of growth and recovery

Special Reports: The UK is recovering – so says Chancellor George Osborne after delivering his 2014 Budget in the House of Commons. But how are Yorkshire's industries fairing?

Older article

Christmas News Special: Domestic Abuse

Special Reports: In the first two weeks of December this year, North Yorkshire domestic abuse charity IDAS had a surge in calls for help.

Top articles

Emmerdale stars in surprise wedding at Harrogate's Ripley Castle

Harrogate, Craven & Wharfedale: Guests were only given 45 minutes notice of what was going on.

Outgoing HSBC boss paid £6.1m as profits miss City expectations

National: The outgoing chief executive of Europe's biggest bank has seen his annual pay rise to £6.1m as the bank reported profits that missed analysts' targets. 

Man fined €208,000 for trying to pass off veal for fruit at self-service till

World: A man in Germany has been fined €208,000 (£184,224) for putting expensive meat through a self-service checkout as cheaper fruit. 

Elise Christie fit to compete in 1,000m short track speed skating

Sport: Elise Christie will compete in the 1,000m short track speed skating heats at the Winter Olympics on Tuesday, three days after injuring her ankle.

Geoffrey Rush 'inappropriately touched co-star on stage', court told

Showbiz: Oscar-winning Australian actor Geoffrey Rush has been accused in court of repeatedly touching an actress inappropriately while on stage.

Could one of these jobs be for you?

Business: Recruitment agency HQ Personnel reveal their top 5 vacancies.

Record results for Harrogate Grammar Sixth Form

Education: Find out why you should take a look at the Sixth Form of Harrogate Grammar.

The Wise Owl Hoping To Lead Harrogate Town To The Top

Sport: Harrogate Town manager Simon Weaver chats to Stray FM about making the transition from player to coach and his desire to take Town higher up the football ladder.

Leo is in luck in the UK!

70s On This Day: He finally got his number one on these shores

Harrogate hairdressers' call to help the homeless

Harrogate, Craven & Wharfedale: Customers are being urged to take part in a 'Product Amnesty'.

Record results for Harrogate Grammar Sixth Form

Education: Find out why you should take a look at the Sixth Form of Harrogate Grammar.

What happens on a sugar detox?

Food and Drink: Local residents have been on a 4 week program... what were the results?

Making Your Valentine's Day Flowers Look The Best

Family: Love is in the air during the month of February and should you have a delivery of flowers, Rossett Adult Learning's floristry course has the tips to keep them looking their best for longer.

Top Party Dresses for the Festive Season

Christmas: Local Blogger, the Harrogate Girl, picks the best frocks, gowns and outfits for the big Christmas parties of 2017.

The Yorkshire floods: one year on

Special Reports: People affected by last year's downpours describe what has happened in the last 12 months

Unique Sixth Form Experience

Test pages: A staggering 92% of pupils from St Aidan's and St John Fisher's Associated Sixth Form gained places at their first or second choice institution.

Tour de Yorkshire: LIVE BLOG

Harrogate, Craven & Wharfedale: Follow all the action as 2017's Tour de Yorkshire hits the Stray FM area.

Tour de Yorkshire host venues confirmed

Harrogate, Craven & Wharfedale: There'll be no re-run of this year's memorable Tour de France stage finish in Harrogate.

Christmas lights switch-ons near you

Harrogate, Craven & Wharfedale: Find out where you can see the festive illuminations being turned on and when across Harrogate, Craven and Wharfedale.

Poll

This Valentine's Day I...