Managing Money

If you are looking after your relative, and perhaps other dependants, you may find that you have to balance high outgoings with a low income (especially if you have given up your job). To stay financially stable, you need to minimise your outgoings by working out how you can spend less, and maximise your income, not least by exploring your options for financial help.

Budgeting Efficiently

To keep your finances in order, it is advisable to work out a weekly or monthly budget. If you are constantly over budget or short of money for essential items such as food, clothing and bills, you need to look carefully at your income and outgoings to establish whether you need help.

Consider if you could save money or get help by answering the questions below:

• Are you and your relative receiving your full entitlement of benefits?

• Can you get any help with bills? Utility companies, for example, gas and electricity, often have special facilities for helping people who cannot make a payment. There are also charities that help people who are struggling to pay bills.

• Are you spending money on items for which you could be receiving subsidies, such as prescription charges or dental care?

• Are you spreading your bills evenly over the year? Smaller monthly bills are often easier to handle than big quarterly demands. Look into setting up a direct debit with your bank or building society, save through a budget scheme or buy savings stamps.

• Is there any part-time work you could do from home? This could just be on a temporary basis until you are more financially stable.

If you get into debt, do not panic. There is always a way out if you seek help early enough. Organisations, such as the Citizens Advice Bureau may be able to help you find a way of repaying your debts. Give details of all your debts, however huge they may be.

Prioritise your debts and don't be embarrassed to ask for help. Advisers will not be judgemental.

Don't just ignore the debt. This will not make it go away. Don't take out one loan to pay for another. It may solve the problem temporarily, but it will only plunge you deeper into debt in the end.