Maximising your income can allow you to make a realistic repayment offer. You can maximise your income by checking your tax and benefits entitlements. You may also be able to take in lodgers or work overtime. You may want to consider selling your home. If you choose to sell your home, be wary of schemes offering to buy the property and rent it back to you.

• What is maximising income?
• Increase your earnings
• Tax
• Benefits
• Take in lodgers
• Other sources of income

What is maximising income?

Maximising your income means taking every opportunity to:

• increase your earnings,
• reduce the amount of tax you pay,
• your entitlement to claim any benefits.

Start by checking that you are receiving all the tax and welfare benefits that you are entitled to.

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Increase your earnings

You may be able to ask your employer to work overtime. This can be a useful help if you are trying to clear priority debts.

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Tax

Check the amount of tax that you pay. Make sure that your tax code is correct. Check that you are claiming any tax credits you are entitled to. Information about tax codes and tax credits can be found on the Inland Revenue site.

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Benefits

You may not be claiming all the benefits you are entitled to. You may be able to get significant help from:

• housing benefit,
• disability living allowance,
• pension credit,
• tax credits,
• jobseeker's allowance.

Information about benefits is available on the Social Security Agency site. An adviser can help you work out if you are getting all the benefits you are entitled to. Contact your local Citizens Advice Bureau for more information on benefits.

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Take in lodgers

Taking in a lodger can be a useful source of extra income. However, there are drawbacks to taking in a lodger:

• you may need your landlord or lender's permission,
• your benefits may be reduced,
• your insurance payments may increase.

Remember that taking in a lodger can be stressful. Consider your family's situation before taking in a lodger.

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Other sources of income

How you maximise your income depends on your personal circumstances. You may be able to:

• apply for a community care grant,
• apply for child support or maintenance,
• cash in any savings or investment policies.

If you own your home you may want to consider selling your home and moving to a smaller property. However, this has serious implications and you must remember the costs linked with selling your home.

How you maximise your income depends on your personal circumstances. An adviser can help you work out how to increase your income.

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