Income Review
Part of the process of getting out of debt is to maximise your income. Consider how you might be able to
increase your household income now.
- Are you earning as much as you can? It goes without saying that achieving higher earnings to make
additional debt repayments is a good start to tackling the problem, but it’s not always that easy, is it?
Working longer hours in your main job or taking on an additional part time job are often not serious options,
especially if you are retired, or looking after young children. If you could earn more, I guess you’d be doing
it already. However, if you can earn more, without running your health into the ground, go for it.
- Are you claiming all the benefits you are entitled to? Depending on your level of income you may qualify
for help from the National purse, so go along to your local Benefits Agency and see if you qualify for any
financial assistance from the State. Contact the Inland Revenue for tax credit advice, and to check on your tax
code.
- Are all adults in your household making a meaningful contribution to domestic costs? Adult children living
with parents often consume far in excess of what they pay for. If debt has become a pressing problem in your
household then all adults living with you should make a fair contribution to the household budget.
- Review any sources of unearned income from money on deposit. Ask yourself whether it makes sense earning a
level of interest on deposits that is lower than the interest you are paying on your debts. Perhaps the cash
would be best used to reduce debt.
- Could you let a room in your home to generate some rental income?
Remember, all your bills and debts are paid out of 'after tax' income, so it is the net income figures you need
to be working with.
Assets Review
Liabilities Review
Expenses Review
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