Newer version available

There is a newer version of this publication available:
Debt Advice Handbook Scotland 1st ed - with new material

Reduce expenditure

• Utilities
• Satellite TV
• Telephone, mobile and internet
• Vehicles
• Meals at work
• Non-essential items
• Council tax
• Luxuries and non-dependents

Carrying out a comprehensive exploration of the client’s situation can identify opportunities to reduce expenditure. It is important to avoid being judgemental when looking at a client’s expenditure.

Here are some areas you can look at with your client.

Utilities

Check if the client can change to a cheaper utility provider. Check meter readings are accurate and up to date. Check they are on the most suitable tariff.

Satellite TV

Discuss with the client ways to reduce their subscription to a cheaper package or to Freeview.

Telephone, mobile and internet

The client may be able to combine all three of these into one cheaper package or find a package which offers benefits such as free evening calls.

Vehicles

If the client does not need a vehicle on a day-to-day basis, then selling it not only provides a lump sum of money but reduces their expenditure. They could also look at trading in for a cheaper model. (Although this may increase running costs.)

Meals at work

Preparing a packed lunch is cheaper than paying for pre-made food.

Non-essential items

The client could cut back on items such as dry cleaning, newspapers and meals out. Remember that what may seem non-essential to us may be essential to the client. Do not judge or assume cutting back on such things will be easy for them.

Council tax

Depending on the client’s situation, they may be eligible to receive a reduction in council tax costs. Examples of this are:

•Single person discount. If the client is over 18 and the property’s sole occupier, they may receive a 25 per cent discount.
•Severely mentally impaired exemption or discount. If the client and every adult living with them is severely mentally impaired, an exemption may apply. If all but one adult in the property is severely mentally impaired, a 25 per cent discount can apply.

Luxuries and non-dependents

Luxuries are items of expenditure which, in comparison to the possible loss of other goods or services, are considered less essential. These could be online video streaming services, a family car which is not used or an overly expensive mobile phone package. These items may be cancelled or the cost reduced.

If the client lives with non-dependants (eg, their adult children), they could ask for a nominal payment for board and to assist with household expenditure. In some cases, this can lead to family disagreements and should be handled carefully.