Budget 'can help with money management'

The setting up of a budget can prove to be an effective means for people to get to grips with their finances, it has been suggested.

Commenting on the launch of Wesley Mission's online budgeting website, Graeme Cole of the organisation claims that planning finances can be especially useful for those consumers who are "in over their heads".

Indeed, financial counsellor Sandra Bourke adds that a lack of preparation can see people struggle to keep up with demands for payment on essentials such as utilities.

And she claims that while credit cards are often used to supplement spending, this can be the start of major financial difficulties.

Ms Bourke goes on to claim that people are placing less money into saving accounts these days.

She adds that many people are spending more money than they are actually bringing in, with credit cards especially playing a factor in overspending.

Earlier this month, Michelle House, creator of secretbudget.net, told the Courier Mail that as money is "a precious, finite resource" setting up a budget can help monitor regular areas of financial demand.

Written by Emma North