Managing income and expenditure

Good financial planning has a key role in managing income and expenditure in both private and public finances. Services offered by organisations or planning aids found in the literature or on the Internet can all be used to help in financial planning. It is the local authorities’ job to provide statutory financial and debt counselling for local residents.

Taking a loan is always a major decision for private households. Before taking a loan, borrowers should sort out how the loan is to be repaid and plan things carefully using a loan calculator.

People in financial difficulties should take steps immediately. The total sum due increases continually until it is paid. Those in temporary financial difficulties should settle with their creditors immediately on payment schedules for bills and loans. Voluntary financial arrangements can often be enough to sort out difficulties.

Outstanding moneys are collected by debt recovery proceedings if they are not paid voluntarily. Debt recovery or ‘distraint’ proceedings are carried out following a court order. Taxes and certain insurance payments can be collected without a legal judgement.