AS HOUSEHOLD’S in Coventry receive their new council tax bills, concerns have been expressed by Creditfix about people falling behind with payments.
With nearly all local authorities in England, including Coventry, implementing the maximum council tax increase, residents face a significant financial burden.
According to findings by the County Councils Network (CCN), 95 per cent of local authorities in England intend to raise council tax by the maximum allowable percentage of 4.99 per cent.
Recent stories have underscored the pressures many households are facing, with the looming threat of council tax increases potentially pushing them to the brink.
Coventry itself carries a debt level of £20,275.
Maxine McCreadie, personal finance expert at Creditfix, cautioned Coventry residents about the dangers of cutting back on council tax payments.
“It’s crucial for people facing money struggles to recognise that cutting back on council tax payments may seem like a temporary solution, but it can result in long-lasting consequences.”
Ms McCreadie outlined five key points to consider if anxious about the payments.
Two warnings – Councils typically send two reminder notices in a financial year for missed council tax payments before issuing a final notice demanding payment of the entire year’s tax within seven days.
Bailiff involvement – Non-payment may lead to bailiffs visiting homes to recover outstanding amounts, adding to the distress of people already facing financial challenges.
Increased debt – Unpaid council tax does not ‘just vanish’ and may result in legal action by local authorities, leading to increased debt through court fees and interest charges over six years.
Negative credit scores – Defaulting on payments can have long-term effects on credit scores, making it difficult to secure future loans or credit.
Potential court proceedings – Persistent non-payment could escalate to court proceedings, adding legal expenses and potentially more severe consequences.
Ms McCreadie added: “I’d urge anyone facing financial difficulties in Coventry to proactively address their council tax obligations and explore available support options.
“Seeking assistance from local authorities or financial and debt advisors can provide valuable insights and potential solutions to avoid falling behind on payments.”
Anyone concerned about paying their council tax bills should visit coventry.gov.uk and search for ‘Council tax support’.
