Times are hard, and our bills are getting larger. Our belts are becoming tighter yet we have less disposable take-home pay to make it easier for us. As a consequence of this we are seeking the services of financial advisors to give us first-class Debt Management plans.

How many of us each month simply work out how much we have by the total that shows up in our current account? Or even worse how many of us are constantly relying on our overdraft instead of managing our budget more effectively? Before we get to the situation that we have to deal with things like a Scottish Trust Deed or Debt Management Consolidation loan to bail us out, let’s see if we can take responsibility.

How may we plan wisely? Well keeping track of your incomings and outgoings will reveal to you how much disposable take-home pay you have each month. I for one have an excel worksheet with up to a year’s activity. It may well appear a little extreme but for the next twelve months I know the basics of what I have to pay out for for like rent; council tax etc also I know just what disposable take-home pay I have.

I can plan for things like as holidays, anniversaries, car maintenance etc and not be anxious that I have overstretched myself. I know if I have by checking further down the months. It also will mean I know when bills are due. We get paid at the end of the month so I know that I have got X amount to cover for the following month. When I get paid I then go through and pay any bills that do not need to wait. I tend to reason why pay a bill on the fifteenth if you can pay it on the first. It won’t make a difference to how much money you have left spare and you won’t have to be troubled that you have forgotten to pay for it.

I have additionally set up direct debits or standing orders for things like rent and council tax, the food budget etc. Subsequent to my experience with forgetting the petrol bill, I’m now contemplating setting one up for that too.

You could possibly imagine that things like petrol and food will differ each month so why set up a direct debit? I would say that it is usually better to pay something than nothing. When you do fail to rememberto pay a bill then at least you know something has been paid and you won’t incur a late payment charge. Just make certain that it’s more than a minimum repayment. If you do not forget then all you have to do is pay the extra.

As an example let’s say we spend ?200 a month on essential groceries but want to set aside a little in addition for some niceties. Set up a direct debit for ?200, but budget for ?250 on your table. By allowing for a little extra on your table you may see if this overstretches you or not. If it doesn’t then you know that after the ?200 has gone out the bank, all you have to do is pay the ?50 to pay the rest off.

The trick is to be certain you do not go over your budget and that you always pay off in full. This really is first-rate Debt Management practice and will keep your finances is good health.

If we’ve already reached financial crippling then do not dismiss the thought of a table to help you budget. Even if you have got a Scottish Trust Deed, you’ll see after the month-to-month payment goes out each month, what you have to work with each month. The same applies with a Debt Management Consolidation loan or transferring your credit card debts into one more manageable debt. By placing it all down on ‘paper’ we deal with our money and in the end our lives better.