The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
Daily StarBarclays bank customers STILL locked out 24 hours after crashDaily StarThousands nationwide were left stranded without cash on Saturday night as people were unable to use their debit or credit cards at ATMs or shops. Barclays apologised for the outage, but said problems this morning were not related to yesterday's ...and more »
LivemintThe public pension system is under stress, thanks to global ageingLivemint... the pension industry. Edited excerpts: Many countries have adopted the defined benefit format for pension contributions; however, this hasn't worked well for government finances. ... What would it require for a system to be completely based on a ...
This is MoneyGot a pension through work? Take cover now before the Chancellor really gets going, says JEFF PRESTRIDGEThis is MoneySome pleasant – increases in the personal allowance, the higher rate income tax threshold and the annual Isa allowance. ... Hammond will hurt our finances with some surprise tax hike while offering us crumbs of comfort elsewhere. ... It is also fearful ...
This is Money'Sometimes I feel over-rewarded for what I do': Kate Thornton opens up about TV gigs, why she no longer has a ...This is MoneyShe has cannily doubled the money she has invested in the profitable London housing market. Her biggest .... I never use credit cards. I run a cashback website, TBSeen, so I do not bother to try to get cashback through my credit card. My business was ...and more »
This is MoneyFloored by the big buy-to-let profit sump: Experts advise on cost cuts as tax changes hit hardThis is MoneyLandlords are being urged to seek cheaper mortgage deals fast to keep costs low as new tax rules are set to bite into their profits. In April the way tax is calculated on rental income from buy-to-let investments is changing. Investors will no longer ...and more »
Have you met...
Latest Members:


adwhitco


Shane


marwa


ledonegm


jordanss123


nona


BrynjarEindride

 

Factsheets

Email this story to a friend:

Adding up your outgoings:


Once you know exactly how much money is coming into your household you need to count your outgoings.16-04-2009

The difference between the two figures is what’s left to clear your debts. By outgoings I mean the amount you spend on your basic living costs.

Decide whether you want to calculate your budget weekly or monthly. It’s usually best to opt for weekly if you get your income weekly and monthly if you get paid monthly. Work out how much you spend or have to put aside each week or month to cover everything.

Add up your rent or mortgage and council tax. If you pay your gas and electricity every quarter add the bills for the last year together and divide by 12 to get a figure for a month or 52 for weekly. Do the same with any other bills you don’t pay monthly like the TV licence and water charges. Don’t forget insurance, car tax, any court fines, travel to work and school, prescriptions.

Once you’ve worked out all the bills calculate how much you usually spend on food and household items like bleach and toilet roll. You can add in bit for clothes, Christmas presents and going out but be reasonable.

It can be very useful to get a check list from your local advice centre so that you don’t forget anything essential. Most will have one. You can find details of various organisations that help with debt problems in the factsheet ‘Getting Help with Debt’.

Once you’re happy you’ve got a realistic figure for what you have to spend each week or month on day to day living subtract that figure from the household income. If you spend more than you have coming in, look for ways to cut your expenditure. If you got rid of your car could you cope and would you be better off? Are you spending more than you can afford on clothes and nights out? If you’ve already cut back as far as you can and feel at a loss to know what to do next get advice.

If you do have some money left over after you’ve paid out for all the essentials, that money can be used to clear your debts. You need to pay off the priority debts first. Those are the debts that could get you into trouble. If you don’t pay your rent or mortgage debts you could lose your home so they are priorities. Gas and electricity could be cut off and you could be fined for not clearing the arrears of council tax. So those are all priorities.

Don’t borrow more money to pay off debts. Get help first. Even consolidation loans which allow you to borrow one sum from which you can pay off all your debts may not be right for you. Get advice before you take on any new loans.  

Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks