Budget your way to better finances

Thu, 10 Jan 2008

Anyone who wants to sort out their personal finances should sit down and work out a budget, says one expert.

Frances Walker, spokesperson for the Consumer Credit Counselling Service (CCCS), said: "You need to sit down and do an annual budget and then divide it by 12, so that you take account of things that come in quarterly or your car insurance that comes in annually."

She added that people should check to see that they are not living beyond their means.

Ms Walker said: "If you add up everything that you have to repay every month - unsecured creditors, such as credit cards and personal loans - if that comes to more than 20 per cent of your personal income, you are over extended and you need to look at that."

She suggested that people in trouble might wish to talk to debt charities like the CCCS as any help their bank offer may be limited to just one consolidation loan .
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