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Managing money on a tight budget

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Managing money on a tight budget

Are you living week to week? Tired of being short just before pay day? Read more to find out how to manage your money when the budget is tight.

Make a list of what you spend your money on each week

A good starting point is to understand how you spend your money and then seeing where you can make some changes. By noting your weekly expenses it will encourage you to be mindful of what you are buying and how much is coming out of your accounts each week.

Plan for your annual expenses

Events like Christmas, birthdays, car registration and insurance come at the same time every year so try to put away some money from your pay each week into a separate savings account. Breaking down larger expenses into smaller ones and spreading them over a year instead of a lump sum will really help with managing these costs.

Be honest with yourself about your finances

The most important thing I can share with you is not to bury your head in the sand if you find yourself struggling to juggle everything. The further and further you get behind, the harder it will be to get back on your feet. The sooner you face up to it, the better you will be both financially and emotionally. Contact your financial institution if you are struggling to keep on top of loan repayments I can not stress enough how important it is to communicate. The best thing you can do is to be forthcoming with your creditors about your circumstances and show a genuine desire to want to get back on track. If you feel embarrassed about your circumstances – don’t. We often forget that the people on the other end of the telephone line are human and it is not their job to judge you. They will look for ways to assist and they, much like you, want to see you get back up to date and stay that way. Make your repayment arrangements with creditors realistic It’s important to have a clear and realistic understanding of your expenses. If you make arrangements with creditors, make sure the amounts you have agreed to pay are realistic for your circumstances. Avoid setting yourself up for failure and make sure you commit to an amount that you can afford.

Follow through with your repayment plans

If you commit to an arrangement then make sure you stick to it. And if for some reason you can’t make the payments as agreed, contact the creditor to make alternative arrangements, preferably before the payment is due to be paid.

Be wary of ‘quick fix’ debt consolidation companies

My last piece of advice is to be wary of the companies claiming to be able to solve all of your debt problems. As the saying goes, if it seems too good to be true then it probably is. Sometimes their services can be quite costly and will often provide a far greater financial benefit to them rather than you.

Essential points:

  1. Pay attention to how much you spend
  2. Plan for big expenses you KNOW you'll have to pay
  3. Be 100% honest about your finances and work out repayment plans with people you owe money to
  4. Stick to your repayment plans (or you'll never get yourself out a tight budget)
  5. Be careful about paying someone to fix your credit.

Want to know more?

As a credit union, we are proud to provide our members with a level of friendly, helpful & supportive service that other financial institutions struggle to offer. If you believe you are in financial distress, or would like to chat about what options are available to you if you are finding repaying your loans with us difficult,You can request a call back from our team or call 1300 622 278, Monday to Friday 8am – 5:30pm.

Our Camden, Narellan, Picton or Tahmoor branch teams are also happy to help.

Find out where our local branches are located.

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