In Times of Need – April 2003

Once upon a time there was much talk of the ‘three Rs’.
So why is it that so many clients that budgetors see today seem to have lost the art of reading? So many problems are caused by not reading bank statements, contracts and agreements, and this is to name but a few. The monthly bank statement can reveal fees for failed automatic payments, for exceeding agreed overdraft limits, excess use of Eftpos, and ringing the 0800 number to check the balance of account. As this is usually nil, it is also a wasted exercise.
What about Hire Purchase contracts or personal loans? How many people actually calculate the total amount payable in interest and additional costs? As budgetors we  recommend that people shop around for the best deal. Some people try to solve major financial problems by taking out a personal loan. It’s a bit like putting a band-aid on a broken leg, as ultimately it is just one more account to pay. Recently we were asked to look at a Life Insurance Policy which had an expiry date coinciding with the clients 65th birthday. The company confirmed that after that day further insurance would be offered at a higher monthly premium.
Money Management is another word for Budgeting. Always read the fine print, and if you recognise that you have a problem with making your money go round, make that budgeting appointment today.
Pearl Pavitt
Rotorua Budget Advisory Service

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