A Guide for single parents with debt

The UK Insolvency Helpline is an largest independent organisation in the UK offering advice to on debt and single parents and lone parents.

• What does the debt and single parents advice service provide
• Common method for dealing with debt and single parents
• Common reasons single or lone parents get into debt
• A single parents checklist for coping with Christmas
• Quick facts on the topic of debt and single parents
• Other Organisations assisting debt and single parents

What does the debt and single parents advice service provide

The UK Insolvency Helpline deals with many low-income parents who are desperate to avoid incurring debts.

We offer advice on debt management, debt counselling and general money advice. We realise that single parents suffer more from debt than other family types, with household bills often causing the biggest problems. Most single parents are working but on separation or divorce, mothers and children usually see a fall in income which can put them into debt. Single parents and their children and lone parents are more likely to be in debt to money lenders and other home collection credit providers than other double income households.

The UK Insolvency Helpline now has a dedicated debt and single parents team for those who need advice. The UK Insolvency Helpline is supported by the private and public sector and is now pleased to be the largest money advice service in the UK. The staff at the helpline take around 3,000 calls a month from single parents wanting advice, The UK Insolvency Helpline is pleased to be able to offer advice to the 1.000,000 single and lone parents in the UK seeking debt advice. Single parents with debt can benefit from a advice service for coping with their children single-handily and at the same time juggling debt and money problems.

The service provides fact sheets on Dealing with Debt

There are so many single parents facing debt problems and single parents with debt contact the service advise on the following debt related areas:-

• Eviction
• Money advice
• Budgeting
• Utility disconnection
• Involvement of bailiffs in debt recovery

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Common methods for dealing with debt and single parents

1. Free debt management plans
2. IVAs or Individual Voluntary Arrangements
3. Trust Deeds for residents of Scotland
4. Debt management advice
5. Debt consolidation loans
6. Administration orders for people with debts of £5OOO or less.
7. Bankruptcy
8. Debt management options
9. Budgeting advice for lone parents with their debts.

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Common reasons single or lone parents get into debt

• Single parents rely on child maintenance which may be sporadic
• Single parents can get into arrears on their rent because they have other debts to deal with
• Loss of income is common reason for single parents with debt.
• Low income is a popular way for single parents to get into debt
• Increased or unexpected expenses may be a reason for debt to occur with single parents

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A single parents checklist for coping with Christmas

Christmas can be a financial and emotional pressure point for many of the 1.8m single parent families in Britain, one third of whom are having to live on gross incomes of less than £200 per week. The season can bring a sense of loneliness, especially to parents spending their first Christmas without a partner. Christmas can be an expensive experience which presents an enormous challenge for many single parents.

The run-up to Christmas can be an emotional pressure point for lone parents. The online 'Top Survival Tips for Christmas' are there as a source of advice and support to those parents who may be anxious about money and worried about feeling isolated or lonely during the break.

The below are top tips for single parents for coping with Christmas from www.opfs.org.uk and www.oneplus.org

1. Debt and single parents - Make sure the children don’t miss out
   The holiday period is a time for children to have fun. This might be your children’s first Christmas without both parents. Consider the time that your child might want to spend with their other parent or the other parent’s relatives, such as grandparents. If your children will be spending the majority of their time away from you during the holiday, make sure you set aside some special time to spend with them before they go away or when they return. That way neither you nor your children miss out on any activities you normally enjoy at this time of year.
2. Debt and single parents - Plan and stick to a budget
   Taking your regular expenditure into account, work out how much extra money you can afford to spend over the holiday period. Because of the bank holidays, benefits and wages may be paid to you early so you may need to budget for a longer period than normal. Also remember that you may have higher than normal utility bills to pay in the months following the holiday period. Make a realistic budget and stick to it as much as you can.
3. Debt and single parents - Avoid using credit
   Try to avoid using credit or borrowing money to pay for things, especially if you can afford to buy them with cash at the time. If you do have to use credit, think carefully about whether you will be able to meet the repayments when they are due or afford the interest charged. Don’t be persuaded to sign up for store cards if you’re out shopping for gifts, as they can charge even higher interest rates than credit cards – currently averaging at around 30 per cent.
4. Debt and single parents - Plan and agree arrangements for contact
   Try and make the planning of any contact arrangements as fair as possible for everyone involved, especially your children. It should be easier and less emotional if you make arrangements with the other parent as early as possible and work out who the children will spend their time with at this time of year. You and the other parent may wish to share the time over the holidays. It is important for your children to spend time with their other parent and you can use this as an opportunity to spend time on yourself, arrange to see your friends and family and rest, relax and recharge your batteries.
5. Debt and single parents - Don’t feel under pressure to spend too much
   Don’t leave shopping until the last minute. Shopping in a rush could mean you buy up whatever’s left on the shelves and spend more money than you meant to in a panic to remember everything. If you can, try to buy things over a number of weeks, bit by bit, in the run up to the holiday period. If you are able to discuss things with your child’s other parent, work out who will buy what and share the cost of presents. Other family members may also be willing to help with presents for the children.
6. Debt and single parents - Don’t feel isolated – you don’t have to do it alone
   If you’re feeling pressured by doing everything on your own, especially if this is your first Christmas alone, get in touch with other lone parents – they might be feeling the same. Shopping together could save you money on multi-buy offers or other in-store discounts. You could take it in turns to make a meal or plan to have one together over the holidays. Organisations such as Gingerbread have local groups that you can join. These can be a great source of support and social contact for you and your children, and they often organise activities and social events at this time of year.
7. Debt and single parents -Involve the children
   Remember to involve your children in the planning over the holiday period. If you have older children, you might need to consider that they may want to do things outside the family with their friends. Talk to your children and give them as much advance notice of planned activities as possible, so that they feel included. Children can help out with the cooking or shopping or could, if you celebrate Christmas, have fun making decorations. Communicating with your children and working together can help to avoid tension and disappointment.
8. Debt and single parents - Think about the future
   If this is the first time you are spending the holiday period as a one-parent family, you may find that the usual family traditions, that you have previously enjoyed, seem different or are harder to cope with. Don’t feel that you have to make things ‘perfect’. If your children are older and can understand, explain that things will be different this year and deal with the change in your situation in a positive way. Children can be more resilient than you think. Why not introduce some new activities you can do together as a family, like going for a walk in the park? This might be something that you can carry on year after year.
9. Debt and single parents - Find out about cheap activities Check your local newspaper, library, community centre or supermarket noticeboard for details of any seasonal events. You may be able to find events that are cheap or even free, but will still be a treat for the children. If there aren’t enough people in your family to take advantage of family tickets or other discounts for shows or leisure activities, join up with another one parent family or other friends.
10. Debt and single parents - Look after yourself and ask for help
    Remember to take time to relax when you can, even if there is just one afternoon when you can put your feet up and spend time on yourself. You could end up feeling overwhelmed if you try to do everything on your own without support. Get together with your children, family and friends and share the workload so that you can all enjoy the holiday period. There are also organisations you can contact for information, advice or just for a listening ear.

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The following is reproduced from One Parent Families Scotland

One Parent Families Scotland which has been working on behalf of lone parents and their families since 1944.

They are a national voluntary organisation, registered as a charity. The members include individual lone parents, various organisations working with lone parents and others who just simply want to support the cause of lone parents.

• A telephone help-line for lone parents, pregnant women and contact parents and organisations working with lone parents, on topics such as benefits, employment, maintenance, funding for education, holidays, childcare and parenting problems. They can also do individual benefit calculations over the phone.
• Lone Parent Rights Guide and a wide range of fact sheets. They also produce a regular newsletter for members and other interested organisations and we are compiling a Scottish Directory of Organisations relevant to lone parents.
• A web site giving direct access to our information.
• Training on subjects such as advice for lone parents, child maintenance and sources of help for lone parents. They also have a specialist library for adults and children.
• They support a Scottish Lesbian Mother’s Network and a group in Edinburgh, a Scottish Men in Childcare Network and a Scottish Sitter Services Network.
• A newsletter & a wide range of leaflets and publications on topics such as benefits, holidays & childcare.
• Lobby the people who make decisions on policies for lone parents.

One Parent Families Scotland
13 Gayfield Square
Edinburgh
EH1 3NX

Helpline: 0808 801 0323
Tel: (0131) 556 3899
Tel: (0131) 556 4563
Fax: (0131) 557 7899
Email: info@opfs.org.uk

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Quick facts on the topic of debt and single parents

• Single parents are being forced into the arms of doorstep lenders, because they are denied access to mainstream banking.
• Three-quarters of single parents are using credit to manage their finances.
• More than one-quarters of single parents do not have a bank account
• The government and banks need to do more to provide affordable credit and banking for single parents.
• Single parents are missing out on direct debit savings.
• Single parents are also more likely to have longstanding debts than two-parent families.
• In a survey by ops.org.uk 40% of single parents said they were "always in debt", compared with only 28% of couples
• Single parents were twice as likely as couples to have arrears on household or consumer credit bills
• The financial sector and government need to work together to deliver accessible advice and appropriate services for the many single parent families who need help.

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Organisations assisting single parents:-

Parentline
At some time all parents find that parenting can be difficult, stressful, and even impossible. Parentline Scotland is the free, confidential, telephone helpline for anyone caring for a child in Scotland. You can call about any problem, however big or small.
www.children1st.org.uk/parentline

Parentzone
Find out how you can help your child with their homework; help them prepare for the start of a new school year, about the range of options for out of school learning or the benefits of sharing information with your child's school.
www.parentzonescotland.gov.uk/

One Parent Families Scotland
One Parent Families Scotland has been working on behalf of lone parents and their families since 1944. They are a national voluntary organisation. Members include individual lone parents, various organisations working with lone parents and others who just simply want to support the cause of lone parents.
/www.opfs.org.uk

Homestart
Homestart provides informal and friendly support for families with young children and provides a lifeline to thousands of parents and children in communities across the UK and with forces families in Germany and Cyprus. Through a network of more than 12,000 trained parent volunteers, they support thousands of parents who are struggling to cope.
www.home-start.org.uk

Sure Start Scotland
Sure Start Scotland aims to support families with very young children to ensure they have the best possible start in life, helping them to get the most from subsequent opportunities such as pre-school education.
www.scotland.gov.uk

Stepping Stones for Families
Stepping Stones for Families is a national voluntary organisation, which has been connecting with families and young people in Scotland for over 15 years. Their work provides support, opportunity and a voice for families and young people living in disadvantaged communities. They work with local councils and other voluntary organisations to develop and deliver projects.
/www.ssff.org.uk

Parenting Across Scotland (PAS)
Parenting Across Scotland has been funded by the Scottish Executive to provide a focus for issues affecting parents in Scotland today. They are a partnership of voluntary organisations who use their experience of working with thousands of parents to find ways of supporting parents and families better.
www.parentingacrossscotland.org

OK to Ask
A database set up on the web by Parenting Across Scotland where you can look for help with parenting and family issues. It contains information that is relevant to parents and families who live in Scotland.
www.parentingacrossscotland.org

Stepfamily Scotland
Stepfamily Scotland work to provide support and information for all members of stepfamilies and those who work with them. Their prime service is a helpline which operates to supply information, advice and support throughout Scotland.
www.stepfamilyscotland.org.uk

Family Mediation Scotland
Family Mediation Scotland is a voluntary organisation. They were set up in 1987 as a national umbrella organisation to promote and support the development of local family mediation services throughout Scotland.
www.familymediationscotland.org.uk

One Plus
One Plus provides new opportunities to lone parents and other families, creating training, employment and services in communities throughout Scotland.
www.oneplus.org

Capability Scotland
Capability Scotland is Scotland's leading disability organisation. They provide a range of flexible services which support disabled people of all ages in their everyday lives.
www.capability-scotland.org.uk

Contacting The UK Insolvency Helpline

When it comes to dealing with debt The UK Insolvency Helpline can really make a difference to all the lone parents who want to get more control of their finances but need free, independent and help they can trust. Single parents can order the contact The UK Insolvency Helpline for help in dealing with their with debt problems on 0800 074 6918.

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