INTRODUCTION
Managing money can be difficult for many people.
However, it is worth taking time to plan your spending.
A sensible budget can help you set aside money for bills and avoid problems with creditors.
Here we aim to give you some idea on how to best manage your money, and how to deal with problems if they arise.
One of the best ways to help you manage your money is to draw up a personal budget

THE PERSONAL BUDGET
Your income........
You should put down all the money you are getting from benefits or work. You should check that you are getting everything you are entitled to. If you are not sure the CAB can help you.

Your expenses......
It is very important that you budget to include all your priority expenses. This is because if you do not you may lose a service such as electricity or gas; or even your home.
Priority expenses are:
   rent or mortgage
   council tax
   gas and electricity
   court fines

When you have put down your priority expenses you need to look at your other expenses.
Remember to set aside an amount each week for food, clothing and travel. Include any other
regular payments such as catalogues or club payments. You will also need to set aside money
for other bills such as telephone or television licence. You can be fined or imprisoned if you watch telly don't have a TV licence.

When you have put down all your expenses, add them up. If your expenses come to more than your income you will need to look again to see if you can reduce any of the costs.
If your expenses are less than your income, you will have money left over for yourself; or saving!

Your debts......
Once you have calculated your income and expenditure you need to look at your debts. Like the
expenses these are divided into priority and non priority, the priority debts are the same items as for expenses, it follows that credit & store cards, catalogues, personal loans and any unsecured loans are
non priority.
This distinction is important because negotiations with creditors differ depending upon whether it is a priority or non priority debt. The normal procedure is to reach an agreement with the priority creditors and then any money left over is divided pro rata between the non priority creditors depending upon how much is owed.

What happens if I do not pay priority bills?:
If you do not pay your rent or mortgage, you could lose your home.
If you do not pay your council tax, bailiffs may come and take your possessions and you could be imprisoned.
If you do not pay for your gas or electricity, your supply could be cut off.
If you do not pay court fines, you may go to jail.

IF YOU CANNOT PAY A BILL - DO NOT PANIC!
Contact the person who sent you the bill; especially if it is a priority expense.
Explain what the problem is and try to reach an agreement for payment. If you cannot reach
an agreement or are having trouble paying any bill, seek help from the CAB straight away.

Ask for help as soon as you think you may need it -NOT when all else has failed.

How can the Citizens Advice Bureau help?
If you come to us for money advice, we will suggest these four steps:

Step 1 Maximise your income.
We could check that you are getting all the benefits you may be entitled to.

Step 2 Check your expenditure.
We could look at you budget and make sure you spending plans are realistic.

Step 3 Prioritise your debts.
We could identify and make sure that payment for priority debts is part of your budget.

Step 4 Negotiate with your creditors.
We could contact your creditors, explain why you can't pay and try to come to some arrangement.

What happens if things change?
Problems often arise when things change. These changes can include a relationship starting or ending, the birth of a baby, children leaving school, illness, unemployment, or a change of job.
All these things can change the money you have. They may mean you can get a benefit, but
sometimes you can lose money.

If you have any doubt about the effect of a change, we can help you check it out.

There is a self-help pack provided at the National Debtline website.
National Debtline is a national telephone helpline (Freephone 0808-808-4000) for people with debt problems in England, Wales and Scotland.
Their service is free, confidential and independent.
Click here to visit National Debtline

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