The figures showed that a 372% increase in the number of people becoming in touch about arrears — a hop from 13,353 people this season to 63,016 only four decades after.
This leaves council tax arrears one among the fastest growing types of debt — second perhaps only to cash loans. Back in 2010, just one in ten write off council tax debt, while by 2014 that had risen sharply to 28 percent.
Not only did more people surveyed state they’d rent arrears, however also they owe more on ordinary too. By 2014 the amount people owed on average risen from #675 in 2010 to #832.
This is at the same time when people’s credit card debts are going down following the financial crash. But unlike mortgages out of one-off expenditures, the council tax deduction may build up a lot more quickly, and so on start to limit your economic freedom.
People now find themselves more financially insecure than — that the story is so familiar: just one of renting rather than buying, working parttime rather than regular, and struggling to cover the bills at the end of the thirty days. Nevertheless, the only way to efficiently manage your tax deduction will be to take action, contact your council and also work out a payment program that is appropriate for you.
We’re ready to help with free advice about how to manage the debt, and our advisers have expertise training financial plans on a case by case basis — meaning we are ready and waiting to help get you in paying back your arrears.
GET HELP WITH DEBT AND LEARN TO MANAGE YOUR MONEY
Worryingly, if people are falling apart with their paychecks obligations, it’s frequently a sign they can not afford to make ends meet every month.
So, precisely what are the consequences of letting your noodle stack up? Keep reading, and we’ll give you a bit of background information about council tax, what powers the local council has, and also that which should be performed to get the weight of outstanding bills off your spine.
Firstly, it needs to be said that even though the neighborhood council cannot add extra or interest charges to the amount of council tax arrears that you borrowed from, they do have a terrific deal of powers that they could use as leverage to create you pay up.
If you are falling behind in your council tax statements, your regional authority can act very quickly, and you might soon find they will have passed on your debt to a debt collecting agency. This means you may end up with the bailiffs at the doorway, being summoned to court, or — in some extreme cases — even facing time in jail.