Staying Ahead of The Crunch – Part one: Reducing Household Costs

When it comes to your household bills and services, loyalty rarely pays and it is better to shop around to get the best deals.

We have put together a list of everyday household costs and ways that you could look to reduce these to beat the current crunch!

Gas and Electric

Try using an independent price comparison site such as http://www.switchwithwhich.co.uk. These sites will allow you to input your current usage and see if there is any saving to made. For the sake of a couple of minutes shopping around this may mean quite a large saving over the year. As prices are also on the increase you may wish to consider fixed plans – many suppliers are offering fixed prices for a number of years. Also, pay by direct debit – this will also make it easier to budget monthly and reduce the chances of running up a large bill.

Water

Is often overlooked when people are looking for reductions. In some households it may workout cheaper to have a water meter installed rather than standard rates. Your water company will be able to estimate your saving, and also you will be doing your bit for the environment. If you are already on a meter you could look to get a flush saver, this is a bag you add into your cistern to reduce the amount of water used when flushing.

Have a look on your supplier’s website as often they do have other great water and money saving tips.

Phones, Internet and TV Packages

If you have a mobile, internet and landline, you may be paying a huge amount every month. It pays to check whether you can get a package deal. There is a lot of competition around at the moment, so you could try and negotiate a better deal and play one company off against another.

BT have introduced a new call package to help people on Income Support, Income based Job Seekers Allowance and Pension Credit. This is called BT Basic. The package is designed to help people on lower incomes. The line rental is £13.50 a quarter and this also includes £4.50 to spend on calls. For full details of this please click on this link to visit BT’s website.

A lot of companies are offering free internet as part of other deals. For example, sign up for a mobile and get free internet. Shop around to make sure the deal is as good as face value. Just because something is advertised as free does not necessarily mean you are getting a good deal overall.

Look at whole costs if you have a TV package. Do you watch all of the channels you are paying for? If you were to buy those you do watch as separate deals would it work out cheaper?

TV Licence

In some instances you may be eligible for a reduction. At the moment the full price of a licence is £139.50. If you have a black and white TV this would reduce to £47.00. If you are over the age of 74 you will be eligible for a short term licence because as soon as you turn 75 this is free!!! It is really important that if you are using a TV you have a licence so you don’t risk the £1000 fine.

Council Tax

Check you are in the right council tax band as you may be overpaying, you can do this by contacting your local council.

Possible reasons for reductions could include:
If you are a single person you will be entitled to a 25% reduction.
If you share your home with one adult or more who is not eligible to pay towards the council tax (if they are not your partner)

These are some of the ways you could save money. If you have any other ways of reducing costs that we have not covered, feel free to share your ideas on our message boards.

Stay one step ahead, your money is better in your pocket!

Keep Your Wallet as Fat as the Goose This Christmas

Christmas is fast approaching; the geese are getting fat… our thoughts turn to presents… Arrrgghh where to begin??!

As we all know Christmas can be hard on a tight budget and trying to find the right gift can be a headache and a large expense.

Hampers are a good way of tailoring the gift to the individual without breaking the bank. We have put together some ideas below – but you can be as creative as you like!! Share your ideas with us on the discussion board.

Ideas for Christmas hampers and gift sets
A selection of speciality coffees with a personal coffee cup
Teacup with a selection of herbal teas for the hippy chick
A selection of special sparkling ciders (try saying that after a couple)
Basket filled with deli cheese and home made chutney for uncle Dave
Home made bread in a pretty basket filled with special jams – ideal for Gran
An assortment of chocolate bars tied with a ribbon for the chocoholic
Packets of muffin mixes with chocolate chips and a muffin baking tray
A basket filled with a bottle of wine and glasses for the connoisseur
Deck of cards and magic book to keep the family entertained on Boxing day
Gel pens and pretty stationery
Decorative napkins and napkin rings
Decorative glass filled with sweets
Nail manicure set
Pretty box for keepsakes
Special soaps
Make up gift set
Car polishing set for dad
Herbs and Spices for the master chef
Homemade sauces and chutneys
Pepper mill and fresh peppercorns and not for the faint hearted you could include some hot chilli oils!

It you are a little artier, try something more creative. Be careful though, because if you’re no Van Gogh or Jamie Oliver it could go horribly wrong and turn into a primary school project!

Crafty gifts
Craft supplies
Photo album, hand decorated is even better
Favourite quote embroidered on a nice handkerchief
Baking cookies
Picture frames with that favourite photo
Make your own Christmas tipple – Wines, Beers or Cider

If none of the above hit the spot don’t forget there are always the good old vouchers, this time with a twist

Gift Vouchers
Cinema and Theatre Vouchers
Magazine Subscription
Family Vouchers – For example you could design and make a voucher in exchange for – babysitting, dog walking, gardening
I tunes Voucher
High street store vouchers

How Do I Stick To My Budget?

Ever checked your bank account to discover you have 76p to last you the two weeks remaining until payday? Chances are that if you are living to a tight budget this will have happened at some point. Planning out a monthly income and expenditure budget will help, but it’s useless if you can’t make it work in practice. Here are a few tips on how to stick to a budget:
Spending Diary – One problem with trying to stick to a budget can losing track of where the money goes. To get an idea of what you spend your money on, it can help to keep a diary of every penny you spend. It may take a bit of work but after a few weeks you’ll have a better idea of where the money does go.

Savings Account – A good budget will include money for Christmas and birthday presents, car repairs and replacing clothes. These costs occur from time to time. So tuck away this money into a savings account in the months it is not needed, and you will have a bit of money ready for when one-off expenses come around. For example, you may not spend £20 every month on car repairs, but if you save £20 every month you should have enough when the MOT comes round.

Shop Around – Always make sure you are getting value for your money by shopping around. Making sure you are getting the best deals can save you large amounts of money. Price comparison websites will help to check the prices to find the cheapest deals.

Set Targets – When planning a budget there are some bills that are fixed at the same amount each month and are easy to plan out, but things like food and entertainment are tougher to keep track of. Set yourself a target of how much you can afford to spend and try to stick to it.

Be Green – Being environmentally friendly will usually be cost effective too. Walking instead of driving short journeys will save money on petrol as well as cutting down on carbon emissions. Making sure you use all the food you buy is also good for the environment and will make your money last longer.

Cut Back – OK, so this one is pretty obvious, but cutting back on things you don’t need will really help. Just cutting out one night a month going out and staying in with your friends instead leaves extra money to spend on other things.

These are just a few tips to help you stick to that budget but if you can think of anymore that work for you, why not share them on this page or let us know on our forum here.

Summer Vacation

Schools out for Summer!!!
But how are we going to keep the children happy – and how can we do it for the lowest cost possible???

Apart from the obvious problems of child care during the holidays (paying for play schemes, getting time off work, and generally juggling everything & everybody!), here are a few ideas to keep the children amused.

Check out any “Free“ local attractions, such as museums, art galleries, public gardens, not every ones idea of fun but you could always take a picnic from home (cheaper than on site cafes) and include a game of football or cricket to use up loads of energy.

Find out what’s on offer and ask the children if they would like to go –they might surprise you – your local council website may well have a list of summer events and opening times. You might not be interested in steam trains or gory scenes from the past – but they might be!

Get back to nature - walking is free! For many of us, the countryside or seaside may be reasonably close or within distance of a bus ride. Children of all ages love to paddle or climb (smaller ones under supervision-of course).

If you save shopping loyalty points, they often have offers on theme parks and zoos. You can check the latest offers on their websites.

For younger children, just doing something different is often fun – like taking a train or bus if you usually travel by car. Let them try their hand at cooking or gardening. Some simple baking ingredients or a pack of seeds are relatively cheap to buy.

Use your local library to borrow books or DVD’s, or arrange a toy swap with your friends who have children with similar ages to your own.

Older children may prefer doing something competitive – try to get friends and/or neighbours together to have your own sports day in a local park. Involve the children in planning the day – egg (hard boiled of course!) and spoon races, relay races, three-legged races, and sack races (using old pillow cases) are old favourites. And which children don’t enjoy the sight of their mum/dad/big sister/brother etc racing against each other?

Or if it’s raining (which it probably will be at some point!) use computer games to have tournaments.

Let them do a bedroom makeover. Decide on a budget and stick to it – a new coat of paint would do. Follow what the TV programmes do – take everything out of the bedroom, have a good clean and throw out any rubbish, sell anything unwanted and then “dress” the new room. Lots of supermarkets & discount stores sell low cost cushions and picture frames, etc. Just a simple change could make a lot of difference at very low cost.

Leave a message and let everyone know what’s happening in your area, or pass on any good websites that detail free attractions.

Or if you have had some successes with your family entertainment, pass on your good ideas…..

Budgeting tips for a variable income

Step 1:
Use a realistic estimate for your basic guaranteed take home for the month, try to be conservative. For instance: if you have earned £1050.00 in May, £900.00 in June and £1000.00 in July, consider your bottom line to be £900. Try to save anything over the bottom line, so that you can use it when needed.

Step 2:
Write down what you can't live without. Be realistic about this. Rent, mortgage, utility bills, council tax, food - these are your priorities.

Step 3:
Add the runners-up to that list of essentials. You should have two lists--things you need to be paying each month and things you would like each month. Budget your income to cover the "can't live without" list. In other words, does your bare bones monthly income cover the roof over your head and nutritional requirements? If you have money left over, feel free to splurge on that DVD/magazine/take away you want (or maybe consider a savings account).

Step 4:
Avoid debt. Money borrowed is hard to pay back on an up-and-down income. Don't spend the money if you don't have it. Easier said than done? Maybe - maybe not. If you are consistently spending more than you bring in, go back to Step 1 and start over. It is possible that your budget is not covering your bare essentials? Or that your bare essentials are not so bare!? Keep a check on “cash spending”, how many times do you visit the cash point? And what are you actually spending that cash on?

Step 5:
Try to save for emergencies. You can’t plan for everything, but you can try to be prepared. Again, easier said than done, but consider this. Put a set amount of money in your "can't live without" budget, and you should find that you treat that money with the same importance as you do the rent and groceries. Having an emergency fund is a good feeling; make sure you get an account that pays you a good rate of interest on your savings.

Step 6:
Supplement your income with something steady. An amount as small as £20 or £50 a week can be a big weight off your irregular income shoulders. Creating a budget with no real idea of what you will bring home is very difficult. A small supplemental income will give you a steady cornerstone for your unsteady month ahead. Always remember to budget for income tax and/or national insurance contributions on a second income if applicable.

Step 7:
If your income is variable because you are self employed, take a good look at your business and decide if it is a realistic way of earning money. If you are doing something that you always dreamed about, but it’s not making you enough money to live on, you may have to change your plans and consider a salaried job. If you are salaried but have to rely on commission, consider applying for other jobs where the income is fixed. Commission is great if you have a high sales month, but on a bad month you are at risk of missing priority payments, or getting in debt to make ends meet.

Eating on a budget?

It can seem like an uphill struggle injecting some variety into your diet without spending a fortune. Here are some hearty, filling recipes that will hit the spot -not your wallet!

Pasta Bolognaise: this old classic never goes out of style!
Heat 2 tsp olive/vegetable oil in a large frying pan over a low heat.
Add a diced carrot and onion and cook for 5mins, to soften.
Increase the heat and add 500g of minced beef/pork, stirring for 3 mins until it begins to brown.
Stir in a tin of chopped tomatoes and a little water and bring to the boil. Lower the heat and simmer gently for 5 mins. For extra flavour, try adding a stock cube and/or a little red wine instead of the water.
Meanwhile, cook 450g pasta in a pan of salted boiling water. Drain and return to the pan.
Stir in the Bolognese sauce and serve, sprinkled with a little grated cheese.
(For a vegetarian alternative, try substituting chopped button mushrooms and courgettes instead of the meat.)

Total cost per serving: approx £2

Chunky Casserole: a great one-pot meal to keep you warm through the winter (or the great British summer!)

Fry two finely chopped onions or leeks and a few sausages in a little oil until brown and thoroughly cooked.
Then add about 500g mixed beans (ie, tinned or dried kidney, mung, aduki, black eye beans and chick peas (if dry when bought, these should be soaked in water overnight before use) and stir until coated with the oil.
Add two tins of chopped tomatoes, ¼ pint of stock, two teaspoons of black pepper and the same amount of mixed herbs and bring the whole lot to the boil. Simmer gently for about 20 minutes and serve.
(The sausages are optional, feel free to simply leave them out if you prefer)

Total cost per serving: approx £2

Easy Jambalaya: a spicy Cajun treat straight from New Orleans!

In a large saucepan, fry 2-3 cloves of garlic, a small diced onion, two roughly chopped sticks of celery and a green bell pepper until soft.
Add to this a bay leaf, a tin of drained kidney beans, a chopped smoked sausage (you could use Chorizo or Andouille (available from most supermarkets) as a treat!), 150-200g white long grain rice, salt, a lot of black pepper and about ¾ pint of water.
Simmer for about an hour or until the rice is tender. That’s it, enjoy!

Total cost per serving: approx £3

Hearty Vegetable Soup: another one-pot warmer to help with your ‘five-a-day’!
Finely dice a large onion and two cloves of garlic and fry until soft in a little oil.
Roughly chop three parsnips, two sweet potatoes and four carrots and add to the pan with a tin of chopped tomatoes, dissolve two stock cubes in enough water to cover all veggies and simmer for 20-30 mins.
Serve with crusty bread and friends!

Total cost per serving: approx 50p

Here are just a few of our suggestions, if you have any cheap & cheerful recipes of your own that you’d like to share please feel free to post them on our message board. Bon appétit!

Travelling Light

Travel costs are getting more and more expensive, whether you use public transport, or run a car. Here are our tips to save you money.

If you use the bus or train, make sure you are using the cheapest ticket. Most bus & train companies have weekly or monthly tickets. Some will require a photo-card, others are just purchased on the bus, or at the station.

This means a bit of organisation is needed, but it will also stop you spending extra daily money, because you need change for the bus or train. In addition it will give you a travel option for the weekend & evening, which could save on a regular taxi fare.

If you have children at high school, this can also help with the daily search for money for school fares.

Consider walking or cycling to work. Save money and get fit at the same time.

For any one off trips, try and book in advance to get the cheapest tickets.

Work out how much you spend on petrol & parking. Could you save money by using public transport? Make a diary of how much you spend; you may be surprised at the amount.

Look at the running costs of a car, calculate how much you need to cover car tax, insurance and spares, servicing and MOT. Shop around for car insurance, and check out the best deals for servicing, spares & MOTs. (see www.moneysavingexpert.com)

If you do the School Run, can you start a car share with other parents, or look at a walking bus scheme for the children. Buy the cheapest petrol in your area and try to keep your car well maintained so that your engine’s running smoothly. Try and avoid fines & parking tickets – try to leave time to drive carefully & plan where you will park.
(see http://www.iam.org.uk/)

Please share your tips for cheap travel options, or have you recently decided you can live without a car? How much money have you managed to save? Let us know, on our message board here.

Mortgage Worries

Worried about making your next Mortgage or Secured Loan Payment?

Have you already missed a payment, due to problems with your finances, or problems managing your bank account?

CCCS can help.

As the biggest free debt advice provider, we have recently launched our specialist mortgage advice service. This is due to the large number of clients accessing our service to get help with unsecured debt (loans, credit cards etc) who also had problems with their secured lending.

We can provide support and advice on negotiating with your lender prior to legal action, advising you how to deal with legal action if repossession proceedings have already started and how to manage the situation if there is no option to save the property.
You will also be given advice about how to deal with your unsecured credit debts, including any overdraft situations.

Even if you have been unable to face dealing with your situation so far, it is never too late to get advice and start looking at the options available.
The advice we offer is free, confidential, practical and non-judgemental.

We can give you advice if you have only missed one payment, or if you already have a notice of possession or eviction.

There has been a lot of recent media interest in the area of reposessions. Click here see the video on this page of the recent news item about our service that was broadcast on BBC Breakfast on 14/04/08 for more details, or clike here to read a news report based on a visit from ITV to our Leeds office last week.

To speak to our Mortgage Advice Helpline, call 0800 975 9558.

Not in arrears but worried about the future?
Can you afford to pay your secured lending and your credit debts?

If you have managed to keep the payments up to date on your mortgage but are struggling with your other bills and credit cards, you may want to consider a debt advice appointment with CCCS. We can provide help with budgeting options to deal with your unsecured credit debts.

Try Debt Remedy for debt advice to suit your individual circumstances or call our freephone Helpline on 0800 138 1111.

Spring Clean

It’s nearly time to wave goodbye to winter, so it’s a really good time to de-clutter, so start with your finances.

Go through all your financial paperwork –bank statements, credit card statements, utility bills
Separate out (in sections if you wish) your bank statements/ credit or store card statements, personal loan agreements/hire purchase documents, utility bills, insurance policies, car documents and personal items like wage slips, medical records and birth certificates.

Some documents need to be kept from year to year, for example P60 and tax documents.
It’s a good idea to keep at least one previous year’s bank statements. And keep hold of annual bills like council tax & water.

Shred anything that you do not need to keep (make sure you dispose of anything with personal details securely). Keep everything together in a filing cabinet or documents file.


Deal with all your post & emails, either daily or once a week
This means you will not miss anything important, you can update your budget with any changes to utilities or mortgage/rent, and you will be aware of any problems like overdue bills or missed payments immediately.

You can recycle any junk mail and avoid getting scammed, For example, if you receive a letter/email saying you have won the lottery and they want £20.00 to “release the cheque”, it’s extremely likely to be a scam!! However, if you are having money problems or have no one to discuss things with, it can sit around just tempting you to reply.

Be in control. You won’t actually have more money by having a filing system, but you will know exactly what is going in and out of your bank account. This means you can start looking at ways to save money & get a good deal where possible.
If you haven’t started a S.M.A.R.T budget – see previous blogs - think about doing it now.

Life With Debt?

Being in debt will often mean that people need to make many sacrifices to try to get as much money as possible to pay back their debts. At the CCCS we have been trying to think about ways to live on a tight budget but still have an active social life. Here are a few of our ideas about ways to have fun but not break the bank:

Cancel the Pub Trips – Instead of meeting mates down the pub you can save money by asking your pals round to your house for the night. The music will be better, the drinks will be cheaper and you won’t have to scour the streets late at night to find a taxi. You can also ask your mates to return the favour next time you are planning to meet up.


The great outdoors – Get yourself closer to Mother Nature by enjoying the countryside. Pack up a picnic before you leave and all you will have to pay for is the transport costs. As well as being a thrifty day out, filling you lungs with all that fresh air will help put any money worries to the back of your mind.


Ditch the gym – Gyms often charge huge amounts and hope that guilt will keep people paying long after they have stopped going to the gym. If you really are keen on getting fit then working out an exercise regime based on jogging outdoors and routines that you can do at home will save hundreds of pounds over a year. This way you can have a health body and healthy finances.


Brew your own booze – Most of us like a drink from time to time, but the cost of alcohol can make it a guilty pleasure when there are debts to deal with. One way to keep the costs low is to start making your own drinks. Wine or beer making kits can be bought relatively cheaply and offer a great deal of satisfaction when you have perfected your ideal drink. Rhubarb wine anyone?


Get Cultural – Many museums and art galleries do not charge for admission, and can be a great day out. Dust off your beret and soak up some culture.


Library – Buying books in shops can soon add up to a lot of money, but borrowing books from your local library will cost you nothing and they usually have a much better selection of books to choose from. More trendy libraries will also have a CD or DVD lending schemes, though they usually charge a small fee for these.

If anyone out there has any ideas on how to have a good time on a budget please add your suggestions on our discussion board.

How to Budget

Budgeting can help you take control of your spending and make sure you always have enough money for the things you need to spend it on. Doing a budget is a really good way of looking at where your money goes.



Take a look at the tips on “Be S.M.A.R.T for 2008” below.

You could run a weekly or monthly budget depending on how frequently your income is paid, or a combination of the two.
Whether you receive a salary or benefits & pensions, you can still run a successful budget.

Some people prefer to pay regular bills by monthly or weekly instalments either by direct debit or payment cards. Others prefer to save a regular amount so that bills can be paid quarterly (gas, electric, water) or yearly – motor & home insurances, TV licence, car tax.

Use the facilities that your bank account may offer to help you budget, such as free internet banking or telephone banking to check your bank account regularly.

You also need to keep track of any cash withdrawals to help you keep to the spending limits you set yourself.

Remember, the small amounts count-

Daily spend on coffee & a muffin - £2.50 = yearly spend of £648!!!!!!!!!!

Here’s a simple plan to get you started:

Step One: Total Income


Most people find it easier to work on a monthly budget. This means that you calculating a monthly figure for any income that you receive weekly, fortnightly or 4 weekly:

Weekly figure received: multiple by 52 (weeks per year) and then divide by 12 (months in the year)

Fortnightly: multiply by 26 (fortnights per year) and divide by 12 (months in the year).

4 weekly: multiply by 13 (there are 13 payments of 4 weekly income per year) and divide by 12.

Budgeting on a calendar monthly basis helps as most payments for priorities or creditors are monthly. It also means you are considering every single cost over a full 52 week year.

Step Two: Total Expenses


Some costs will be monthly – mortgage/rent, utilities, etc and some may be quarterly or half yearly costs – TV licence, car tax, insurance on household goods or breakdown cover for boilers/leaks.
Some will be weekly and are more likely to be the items that you buy with cash, or on a debit/switch card or cheque (food, petrol etc.)
You also need to include a monthly figure for clothing and any savings you need for birthdays /Christmas or towards emergencies like car or house repairs. It may be easier to work out what you need to spend over a year, and then divide that figure by 12.

Your budget must be updated if you get a pay rise, or if your costs increase, like mortgage & rent increases, utility bills and insurance.

Hopefully, your income will exceed your expenses and you will have a surplus, meaning you can afford to cover all your costs without using any credit for day to day living costs.

*** If not, you should take immediate action to ensure that your priorities are covered (housing costs, utilities, TV licence, car tax & insurance) by reducing any unnecessary expenses, such as leisure, sky TV and any high spending on clothes, tobacco etc.
You can also look at reducing your spending on priorities where possible ***

If you have outstanding credit debts – loans, credit cards, store cards, catalogues, car finance or HP, deduct the total monthly cost of your credit repayments from your surplus.

*** If your expenses already exceed your income before you add up your credit debts , or the credit debt payments take you into a deficit, you should take the steps to try and reduce your costs but also need further advice to help deal with your credit debts *** contact CCCS immediately.

Step Three: How to use your budget


There may be some items that you pay for during the year but not necessarily every month or every week.
Once you have identified how much you need to budget for these items, you should set aside a monthly figure from your budget.
Two possible methods of doing this are:

Separate & Save

Take the monthly figure you need and transfer it to a savings account.
You could choose a savings account linked to your bank account, so you can transfer amounts back and forth, or an instant access savings account with a cash card/pass book for withdrawals.

You could use one savings account for all your budget items, or have separate ones for each item (car, clothing, Christmas).

By using the money in the savings account only when one of these items is required means you will always have the money available.

Example:
Jan - £25 set aside for clothing
- £20 spent = £5 left in savings account
Feb - £25 set aside, plus £5 left over from January = £30 available to spend

Building & Balancing

Same theory as Separate & Save, but the monthly budget amount you have calculated stays in your bank account. So over the year you build up a large figure in your bank account BUT with this method you have to remember only to spend the money on what you have budgeted for.

Both of these methods require willpower and require you to take responsibility for your own spending habits.

*** By opening a savings account and bank account with a good interest rate – many accounts start paying interest on balances as low as £1, you could earn some extra interest over the year.****


Some people find it useful to keep a record of spending – either on paper or using a spreadsheet or even your mobile phone.

It is also necessary to look at your day to day spending. Try to limit visits to the cash point, or keep a record of your switch/debit card transactions.
If you have a budget of £35 per week for food & housekeeping, £10 for meals at work and £25 per week for travel, try only withdrawing £70 for the week.

You may find that by having contact with actual cash, you are able to spend less than you normally would. So if you have £15 left at the end of the week, you could either have a guilt-free spend, or put it aside for later in the month or into savings.

Visit the Messageboards to share your budgeting experiences and give us your tips.

Can you be SMART in 2008?

It’s a New Year, so its time for those New Years resolutions.

We all have things we would like to change in 2008, maybe paying off a store card or credit card, starting a savings plan or finally looking at those mounting debts and taking some action to tackle them. But we all know that New Years resolutions sometimes only last until the last Christmas card has been recycled! So make it different this year, make 2008 the year that you make changes that could make a difference to the rest of your life.

We know it is easier said than done, and quick fix solutions just don’t work. So we are looking at making changes to lifestyle and financial habits that will have long term benefits.

Using a S.M.A.R.T approach could help…

Read below to find out how to make a S.M.A.R.T start to your new financial lifestyle.

S - Is for Start

Making a budget is the best place to start. This will show if you have money to save, or just enough to cover your expenses, or that you are spending more than you have coming in.

*****If it’s the last one, get help now!!*****

Start looking at where & why you spend money. A weekly or monthly diary will allow you to see how you spend (e.g. ATM withdrawals, switch or debit card or credit cards.

You may be surprised at the results, but it is a really useful exercise to start looking at your relationship with your money.


M – Is for Making Changes

Start with the small changes. Check your bank account and look at your direct debits.

Are there any old direct debits that you have forgotten to cancel that are still being paid? You need to know exactly what you are paying out on direct debits & standing orders and for what.

Shop around for the best deals on utilities, phones, and insurances (see http://www.uswitch.com/).

If you are using credit and feel that you are managing all the payments ok, check that you are getting the best deal for the type of borrowing you use – check out money saving expert .com

Have you been charged for using the ATM? Either use a free one, or if you have no alternative, limit your visits to the ones that do charge.

Look at the ways that you can save money. Most of these are painless but do require a little organisation:

Buy pre paid travel cards –they normally save you a little money on buying your fare daily. (It also avoids the deadly disappearing ten pound note -Break into it to get change for the bus, by the time you have bought a newspaper, drink and a snack for breakfast, you have spent £10.00-and that’s before Lunch!!).

o Have breakfast before you leave for work. And no – the “I haven’t got time “excuse will not work. You need to get up a bit earlier! If you don’t like to eat in the morning then make a snack to take for later in the morning. Make sure you have something that you like. If you hate cereals then don’t have them, a cooked breakfast can be just as quick – make an omelette, or have beans on toast. It’s also healthier than buying breakfast, and you can squeeze in a couple of your five a day fruit & veg portions.

o Take a packed lunch rather than buying, or do 3 days packed lunch 2 days buying. Again, it doesn’t have to be a sad little sandwich. One idea is to take a portion of what you had for dinner the night before, or try making soup –cheap and healthy.


A - Is for Adding It Up

Start looking at how much those little habits cost - and not just the obvious things like cigarettes or alcohol. The daily spend that just disappears into your budget such as coffee & soft drinks, sweets, take away food, CDs & DVDs, magazines & newspapers, presents, toiletries & make up.

Then you can work out how much you could save, and if you really want to continue spending your money in this way.

Spending £10.00 per week for example adds up to £520.00 per year.

Have a no spending day (or week) if you are brave!
Just make sure you have pre paid or have money for travel and have food supplies and entertainment (a book or an iPod) – and then buy nothing!


R - Is for Relationship


Take the plunge and take an honest look at your relationship with your finances.

Have you been putting off making a budget because you don’t want to face the truth? Do you overspend because you have other issues that you feel you need to deal with? Don’t be afraid to ask for help if you feel you have emotional issues that are effecting your financial decisions. Your GP will be able to help with counselling services.

Start making decisions rather than just allowing things to happen- if you want to start saving, or you want to clear outstanding credit or debts then take the first S.M.A.R.T step.

Even if you can not make the changes that you wish to make straight away, being in control and making informed decisions will make you feel stronger and more positive about your financial future. You can share you experiences with other people and get help and advice from this site and our message board (link).


T - Is for Taking Control

Decide on a time scale to ensure that the changes that you want to make are realistic.
You could look at making a budget within the next 7 days

You can look at giving yourself a month to change a bank account or get a better savings account.

Perhaps you could commit to making changes for a period of 6 months to see how much you can change your spending habits

Commit to clearing off your store card or credit card in 12 months (if that’s possible).

Many options for dealing with over commitment on credit debt are over much longer periods than a year, and that is why CCCS will give you the best advice based on your circumstances. You may have to consider an option that is quite challenging, such as a long term debt management plan, or alternatives such as Insolvency.

Please contact us if you think you need help, and help all our other web users by posting your thoughts and sharing your experiences on here and on our Message Board.