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Wednesday, October 01, 2008, 23:00
The number of scare stories rolled out by the media seem to have escalated. Once upon a time there was Northern Rock, then there was Bros Lehman, HBOS and the Halifax, and now the black bowlers at Bradford and Bingley.
In one way or another we're all concerned about the state of our finances. It's all become very personal but how well are you managing yours?
Without rummaging in the pile of unsorted papers in the drawer, write down the following information. First of all, identify and add up all of your income per month. Then detail all of your savings and investments together with any revenue streams.
Having done that, work out all of your outgoings, including the methods of payment. If you can do all of that without referring to a mass of files, you're either a meticulous accountant or a financial obsessive.
When money is tight, you need to make as many savings as you can. And if you've acted on at least some of the Avenger's words of wisdom, you should have already saved a chunk of dosh.
But are you still overspending?
If you spend more than you earn, the chances are that you've borrowed to bridge the gap.
When that scenario is allowed to expand, you'll find that all of your income will be committed to servicing the debts. And you'll have nothing left.
Prioritise payments and cut back on all non-essentials. Set financial targets and reward yourself when you meet them.
Using a credit card as an immediate way of borrowing can be cost-effective, especially if you pay it off at the end of the month.
If not, pay off as much as you can — more than just the minimum payment.
Currently, the best cards to pick up offering zero per cent interest are Capital One's Platinum card, Barclaycard and the Halifax.
The Halifax Moneyback Mastercard will actually give you one per cent back on everything you buy. And even better, the American Express Platinum Moneyback card pays new cardholders an unbeatable five per cent cashback, for the first three months.
Then you could consider switching your bank account. Some banks will actually pay you to switch and add interest to your account, provided you stay in the black.
TOMORROW: THE AVENGER LOOKS AT THE WORLD OF SAVINGS
We're all worried about the state of our finances and now's the time to think about how we manage them
