Cost of living crisis: Debt charity shares advice & where to get support in Birmingham

Birmingham residents need help during these difficult times, so we wanted to see what advice financial experts could provide to those struggling during the cost of living crisis in the city.

Financial experts and debt charities like StepChange can be a starting point to help, if you are struggling with making a financial plan for your future. They provide services such as debt management plans among other things.

Birmingham World spoke with StepChange to provide advice for those struggling with the rising energy bills.

Sue Anderson, Head of Media at StepChange, shared some expert advice about dealing with the cost of living situation. Here is what she said:

1. Firstly, if you’re behind on your bills, talk to your creditors - if they don’t know you’re struggling they won’t be able to help. You might be able to negotiate a payment plan with your bank or take advantage of a grant that can pay off some or all of a utility bill.
2. It’s important to make sure you are getting all the help you are entitled to. StepChange’sbenefits calculator is a really good place to start in helping you easily identify any benefits you can claim to help increase your income and improve your situation.
3. Put together a budget to see where your money is going and understand what bills are the most important. This will help you take control of your finances and see where savings might be possible. Here is a step-by-step guide on putting together a budget.
4. Think about the priority of each of your debts. The priority should always be to pay your most important bills first (like housing costs). Then try to meet the minimum payment on every debt you have each month, to avoid default charges and the effect on your credit rating. After that, you should pay most towards the highest-cost borrowing – that’s the debt on which you’ll have to pay most interest and charges. If you don’t have enough to cover all this, that’s a clear indicator that you could benefit from debt advice.
5. Try to avoid temptation from short term loans, sales, and online marketing for credit such as options to Buy Now, Pay Later. Taking out credit might seem like a quick and convenient way to get money fast, but it’s important to stop and think about the consequences of borrowing, and whether this may worsen your financial situation later on. Before you do borrow, think about whether you will be able to make repayments including interest.
6. Anyone worried about the rising cost of living can explore the support available – the charity’scost of living hub is a useful starting point. If you’re feeling stressed about your finances, help is available. This charity, like others, offers free, impartial and confidential debt advice both online and over the phone. 

Where can you get help in Birmingham?

You can receive help in a short-term crisis if you meet the following criteria:

You are a Birmingham resident aged 16 or over, you are not subject to immigration control or have no recourse to public funds, and you are without sufficient resources to meet your/your family’s immediate short-term needs.

Help with fuel

If you want help topping up your gas and electricity pre-payment meter, you must already have asked your energy supplier for help. If an award is made, a Pre-Payment card will be made available for you to collect.

Other help is also available

You can get a Community Support Grant if you need help setting up or maintaining a home. It can provide beds, table top cookers and table top fridges. Items provided via a Community Support Grant will be delivered and installed to your home.

Further help and advice

Further help and assistance may be available from these sources.

• Birmingham and Solihull Women’s Aid
• St Basil’s Homeless Prevention
• Birmingham Central Foodbank
• Betel UK
• Birmingham City Mission
• Stop Loan Sharks Project
• Financial assistance grants from the Harriet Loxton Trust

This is where you can make a short-term crisis claim.

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