Budgeting the ‘obvious’ solution to debt woes

Posted 2008-03-30

Spending within your means by calculating and adhering to a realistic budget is the simple way to avoid falling foul of debt, one industry expert has said. James Falla, director of debt counselling service Thomas Charles & Co, said that learning how to budget "isnt rocket science" and he urged more Brits to take responsibility for their own actions. "If youre spending more than youve got coming in then youre going to get into debt," he spelled out. Giving straightforward advice about how to draw up an effective budget, Mr Falla urged consumers to tabulate records of all their regular expenses, from rent to utility bills to travel expenses. "Either do an Excel spreadsheet or get a blank sheet of paper and say: Whats the money coming in? What are my wages after tax? Whats my household income? What benefit moneys coming in?," he said. Ultimately, though, the expert cautioned that doing the maths and engaging with your lenders will address just one aspect of the problem. "Ultimately once you know whats going in and whats coming out - the bank cant help you manage that budget," he said. "Its your own personal responsibility."

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