| |  | you will need to PAY to borrow money |
| | | you will be PAID to save money |
| | | At some stage you'll almost certainly need to open a bank or building society account. There are many available and they can be quite different. It pays to shop around for the right one. |
| | | If you are working it's more than likely that your employer will ask to pay your wages straight into your account. |
| | | If you intend to claim benefits you'll need an account for payments to be made to you. |
| | | You can arrange for payments for important things - like rent, gas, electricity and other bills - to be paid automatically from your account on a regular basis. Provided you have enough money this can help you budget and remain organised. |
| | | When you've opened your account make sure you know how to write a cheque, use a debit card and pay money into your account. |
| | | Make sure you regularly look at and understand your bank statement. This is the document that shows all the money entering and leaving your account. |
| | | To find out more about these things click here.
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| | | The best way to avoid debt is to balance your income with your outgoings. |
| | | Keep a simple list of what you are spending your money on each week. Regularly check this balances with your income. If not, try to adjust your expenditure accordingly. |
| | | When you go to the shops look for special offers. When buying food and household things, check the price of a supermarket's own brand against similar items made by other companies. |
| | | Remember that shopping around different places - supermarkets, smaller shops and markets - can also save you money. |
| | | One of your biggest weekly expenditures will be electricity and gas. Check www.energywatch.org.uk to see if your supplier is the cheapest. |
| | | Always be on the lookout for ways of paying less! |
| | | Wherever possible try to avoid borrowing money to pay for your regular outgoings on things like food, rent and bills. |
| | | If you borrow money for something bigger - like a car, a TV or a holiday - make sure you can afford the repayments. It's easy to get it wrong and then end up struggling to pay for basic things like rent, food and electricity. |
| | | There are different ways to borrow money - from banks, loan companies, private individuals, etc. Some of these offer better deals than others. A few might have very unfair and expensive ways of operating. If in doubt, seek advice! |
| | | When borrowing check the terms and conditions of your loan. How much is each repayment? How long will you be paying? What is the interest rate? How much will you be paying back in total compared to how much you borrowed? |
| | | One way of borrowing is through a credit union This a local savings and loans co-operative run by its members for its members. There are credit unions in most part of Somerset.
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| | | With a credit union you can start saving at any age. Once you are over 18, and have been saving for a while, you can borrow at an affordable rate of interest.
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| | | For more about credit unions go to www.wmcu.co.uk |
| | | Being in debt can happen to almost anyone sometime during their lives. Young people often experience difficulties controlling their finances once they become independent. |
| | | People often get into debt if they are on a low income and simply can't afford to pay their bills. |
| | | It's also possible to get into debt by spending more than you earn - whatever your income! People earning a lot of money can become reckless and spend more than they can afford. |
| | | There are different ways of falling into debt. One way is to fall behind with paying bills. Another way is to borrow money and then find you can't afford loan repayments. |
| | | If you get into debt you may face immediate problems like having your electricity cut off or being faced with eviction. |
| | | It's also possible that debt will cause longer-term problems that could affect your life for years. For example your credit rating could be "marked down". This could stop you renting a house or flat, getting a mortgage or taking out a loan for something like a washing machine. |
| | | If it's a matter of you being UNABLE to repay your debts - rather than you refusing to pay - you should be treated sympathetically. Get help quickly to stop it becoming a bigger problem! |
