05 Mar How to do a Budget Audit
Do you often wonder “where does all my money go?” Managing our budget is often a huge balancing act. We sign up for various phone plans, insurance plans and mortgages, but when was the last time you checked that you were still getting the best deal? If you can’t remember then it’s definitely time for a Budget Audit!
How to conduct a simple budget audit
- Get your credit score. You can often get these for free from a number of different providers. Check out our article on Credit Scores Explained for more details on what this is and why it is important.
- Check your monthly income and expenditure to make sure you are not spending more than you are earning. You might be surprised how the little things add up.
- Check your contracts. Mobile phone contracts just roll over on a monthly basis once they expire, so make sure you know when yours expires so you can shop around for a better deal at that time. Other contracts to check are health insurance, home & contents insurance, car insurance, gas and electricity providers etc.
- Check you are not paying too much interest!!! Review your credit cards, store cards, loans and mortgage to ensure you are not paying a high interest rate.
It can be frightening to see how your finances are really going. Once you have completed your audit, if things still aren’t looking too good you may want to look at consolidating your debts.
“Debt consolidation” means refinancing your debt onto the lowest interest rate possible – and setting up a realistic repayment plan to get it paid off! Of course, any debt consolidation strategies can only be successful if you cancel or cut up your credit cards and avoid running up any further debt. If you can commit to that, debt consolidation can potentially save you a lot of money.
There are a few ways that you can do this:
- Consolidate your credit card debts into one personal loan
- Transfer your debt onto a card offering low balance transfer
- Incorporate the debts into your mortgage.
If your situation has negatively impacted your credit rating, you may find that you are not eligible for a loan to consolidate, can’t transfer to a new credit card or even re-mortgage. You may find yourself in a real struggle with debt collectors chasing you and it seems like you might have to go bankrupt.
How we can help
There are alternatives even if your situation is serious. Talk to us about the Financial Hardship obligations of your creditors, Moratoriums and restructured payment amounts and at Active Debt Specialists, we are experts at implementing the Debt Agreement* repayment option, which has no interest, stops debt collectors and your repayment is only what you can afford.
Find the right solution to help solve your credit card debt issues.
Give us a call today on 1800 085 550 for a free no- obligation confidential chat.
* Debt Agreements will affect your credit rating and conditions apply. Find out first.