Budgeting. May 7, 2015 2 Budgeting Income May 7, 2015 3 Budgeting Outgoings (expenditure)

Budgeting

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Income

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Outgoings (expenditure)

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Managing your money

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Dealing with debt

Income

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What is your income? Wages Lodger Maintenance Child Benefit Other benefits Tax Credits Ebay? Car boot?

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Benefit Advice Contact your Housing Association

Welfare Benefit Advice Team Make an appointment at the Citizens

Advice Bureau Local Council Benefit Team

Expenditure

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What is Expenditure? Rent Service charges Council tax Child support Water Contents Insurance Life Insurance Car Insurance Pension Pets Telephone Internet Alcohol and cigarettes

Gas, Electric Wood Housekeeping Food Travel TV + Licence Fines Loans Hire Purchase Clothing Prescriptions

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Priority expenditure?

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These are priority

Budgeting

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How can we reduce costs?TravelFoodClothesStuff!

Sharing

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What could you share?Donnington Tool Library 01952 382203

Credit

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Credits and Loans

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Compare the market!£300 – repaid over 50 weeks

Correct as of 11.03.11Weekly Payment

%APRTotal Cost of Credit

Total Amount to Repay

Provident £10.50 272.2% £246 £546

Shopacheck £9.99 230.2% £225 £525

Just Credit £6.51 26.8% £38.08 £338.08

FAIRshare Credit Union £6.51 26.8% £38.08 £338.08

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Weekly payment centresCash price £1,654.74

+ Service Cover+ Damage Liability Cover

£27.01 per week for 3 years

TOTAL COST

£4,214.11

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Loan Sharks A loan shark is an illegal money lender

A legal lender will be registered with the Office of Fair Trading. You can check if a lender is registered by contacting the Consumer Credit Register: 020 7211 8608 or visiting their website: www2.crw.gov.uk/pr

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Loan sharks tend to:

Offer loans on very bad terms Charge an extortionate rate of interest Harrass people who get behind with their

payments Pressure people into borrowing more money

to repay one debt with another Suggest that borrowers will be prosecuted or

sent to prison if they don’t repay their debt – this can’t happen as they are not legally registered lenders.

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Already used a loan shark?

You are under no legal obligation to pay back a lender who is not properly registered.

You should contact your local Trading Standards office immediately: www.tradingstandards.gov.uk/advice

You can report a loan shark anonymously: 0300 555 222 [email protected] Text LOAN SHARK and the lender’s details to

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Reduce your spending

Use your local Credit Unions!

Owned by its members Secure savings Affordable loans Responsible lending Fully regulated Free protection on all savings and loans

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Don’t bury your head!

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If Debt gets OUT OF CONTROL

Red Bills…if you fail to pay on time Bailiffs…calling at your home

Attachment of earnings…if you are working

Bankruptcy…will mean no loans, no holiday, no car

Arrest…if you fail to comply with a Court Order Prison…for Contempt of Court

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Bank account? Get your budget balanced and start

saving.

Create your own ‘credit’

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What do youreally NEED?

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Budgeting summary Work out your budget Check you have maximised your income Minimise your expenditure Get a bank account Use credit unions if you need a loan