Welcome to York & District Citizen's Advice Bureau's monthly advice column. Each month we attempt to answer questions on different subjects.

The bureau has specialist workers who can help on various matters. This month, we are looking at the homelessness and debt advice service which is funded by City of York Council (using funds provided by the Office of the Deputy Prime Minister).

Q: I have had to stop working and my income has dropped as a result. I am worried about my finances - what should I do?

A: Firstly, you should ensure that you are receiving all the benefits you are entitled to in your new circumstances. The bureau is able to carry out a full benefit check for you. Once you know how much money you will have every week you should be able to budget accordingly.

Q: But how can I ensure that my home is secure - I am worried about losing it?

A: The basic rule is to keep everyone informed about your situation. If your home is rented then you should let your landlord know about your problems early on. If you have a mortgage, you should inform your mortgage company of your difficulties.

Q: But won't that just make things worse?

A: In most cases, no. However, you certainly do need to ensure that your landlord/mortgage company are aware of the steps you are taking to resolve your situation. In particular, you should claim housing benefit to help pay your rent if you are renting your home. If you have a mortgage you may be able to negotiate reduced payments for a period. The key is to be able to show that you are taking the right steps and are in control.

Q: But I don't feel in control - I have got some loans and credit card debts as well as my rent to pay - how can I keep everyone happy?

A: Sometimes it is not possible to keep everyone you owe money to happy. However, you need to make sure that you are correctly prioritising your debts. In general your rent/mortgage, council tax and utility bills should always take priority over your credit debts such as credit or store cards. Once a benefit check has been carried out, the bureau can also help you to produce a budget sheet and correctly prioritize your debts so you feel less overwhelmed.

Q: OK - but what if all that doesn't work. I am worried that my landlord will just want me out?

A: If your landlord takes any possession action such as serving a notice seeking possession you should get advice immediately. It is important to do this as early as possible to maximise the chances of you keeping your home. However, no matter what stage the possession action is at you should still seek help as it may be possible to apply to suspend eviction warrants up until a very late stage.

Q: It all seems a bit complicated - where can I go for some ongoing help?

A: The bureau is currently running a homelessness advice and debt management project from its main office at the top of Micklegate, York. If you have rent or mortgage arrears and are worried about losing your home as a result, or if you are worried that your current home is no longer affordable then we may be able to help you. We may also be able to help you if you are currently in temporary accommodation and need help to manage your debts in order to secure permanent accommodation.

For a referral to the project please speak to any member of staff at the Customer Advice Centre in George Hudson Street, York. Alternatively you could speak to your estate manager or support worker if you have one and they may be able to refer you direct. Remember, help is available - please seek it.

If you have a query about this, or any other subject please contact us at 3 Blossom Street, York, YO24 1AU (tel 08701264850, Fax 01904 620571, email admin@yorkcab.org.uk. You can get details of all of our services on our website at www.yorkcab.org.uk.

York & District CAB is a registered charity offering free impartial, independent and confidential advice.

Updated: 08:41 Thursday, March 11, 2004