Developing your budgeting skills

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When money is tight, it’s important that you budget on a weekly basis. For a start, you will find out exactly where your money goes, and this will enable you to keep better control of your outgoings when set against your income.

There is little doubt that the changes to benefits legislation have had a knock-on effect on many household budgets, with new research by Ipsos MORI and the Cambridge Centre for Housing Research finding that the bedroom tax, or spare room subsidy, has led to 75% of people affected by it having to cut back on food. Published by the Department for Work and Pensions, the evaluation also found that landlords were very worried that some tenants were “in severe poverty and unable to pay the shortfall”. This left many people tending to pay their rent by borrowing from family and friends, using up savings or getting into debt.

One way of planning your budget to make sure you get through to the end of the week or month is to take out short-term loans that can be paid back quickly. The payday loans business has had legislation tightened up recently, so it’s worth checking to see if this type of borrowing would suit you.

It’s always a good idea to shop around when it comes to taking out any type of loan. For payday and short-term loans, you can get quick comparisons as to what is on offer from the website allthelenders, regulated by the FCA and completely impartial and independent. Whether you are looking for a loan for a day or for up to five years, from £10 to £20,000, you’ll find comparisons to help you make up your mind.

Remember to plan how you are going to pay back any loan you take out, large or small, including it in your budgeting.