Debt is now an unavoidable fact of modern life...
And as long as these repayments can be met, there is never a problem.
But for others, levels of debt can spiral out of control.
At CABA, we recognise that debt problems are frequently connected to a range of other issues such as relationship breakdowns, ill health, bereavement and unemployment.
Our free, impartial and confidential advice empowers people to maintain their independence by managing their finances for themselves.
And at the heart of this guidance is successful budgeting. In essence, this ensures that you don’t spend more than you earn.
CABA's debt and advocacy team leader, Will Solomon, believes that the frenetic pace at which many Chartered Accountants work is the reason why their personal finances occasionally get overlooked.
Will explains: “Members of this profession spend their days taking responsibility for the finances of others.
“Dealing with tax issues and end-of-year finances is second nature to them.
“But at CABA, we are encouraging Chartered Accountants to take 30 minutes out in their busy schedules to conduct their own self-assessment – which often gets overlooked.
“By carrying out their own financial health check once a quarter, it’s possible for people to ensure that they are fully in control of their budgets.”
Will adds that a good starting point is for anyone seeking to sort their personal finances out is to create their own ‘budget sheet’.
Over a ‘typical’ month, note down all your outgoing expenses – from standing orders for mortgage, rent or credit card payments to utility bills and other ‘sundry’ expenses.
Will continues: “I think that it’s important to note down absolutely everything – even the daily cup of coffee and newspaper that are purchased on the way to work.
“It’s only then that an accurate picture of the amount you spend in a typical month can be gained. And, in my experience, people are often surprised to discover just how much they are spending on sundry items.
“From this point, they are in a strong position to work out any areas which they can cut back on to save money. For example, they might decide that they want to reduce the number of times they purchase a cup of coffee each week. A simple measure like this can significantly increase the amount of money people have at their disposal over the course of a year.
“These savings could be placed in a separate account dedicated to helping fund car maintenance, a holiday, Christmas presents... or other unforeseen expenses.”
Will adds that online budgeting tools can also be an “incredibly useful” way of monitoring expenses.
These internet budget planners have headings for different kinds of income and spending – and users must enter their own accurately calculated figures.
While there are numerous online budget calculators to choose from, Will highlights those found at the following web addresses to be particularly useful:
www.moneysavingexpert.com/banking/Budget-planning
www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/PlanYourWayOutOfDebt/DG_10023176
Will adds: “And, as ever, people should contact the debt advice team at CABA at the earliest opportunity if they become aware that they are encountering difficulties.
“Our team aims to help Chartered Accountants and their dependants regain control of their lives and finances at the earliest opportunity – we are here to help.”
Information about successful budgeting and overcoming debt can also be found from:
• The Citizen’s Advice Service - www.citizensadvice.org.uk
• Consumer Credit Counselling Service - www.cccs.co.uk
• National Debtline - www.nationaldebtline.co.uk
© CABA 2011