Budgeting is an important part of your money management. Creating a personal budget allows you to plan for day-to-day regular bills and household expenses as well as holidays and special occasions. By using Dubco’s Budget Account to pay recurring household bills and expenses, members can ensure that they are never caught out by an unexpected expense.
Here’s an example of how the Budget Plan can help spread the cost of your bills.
Club Membership €1,440.00
Car Insurance €500.00
Total bills for 2017 €4,700.00
Total weekly payment €90.38
In addition, once you have addressed all regular bills / household expenses with our account this will give you a realistic indication of any surplus left for personal spending (entertainment / holidays / emergencies / etc.).
Arranging an overdraft with your Budget Account can help you to provide for changes in expense amounts as it allows you to access additional funds on your account up to an agreed amount. Overdrafts are subject to terms, conditions and financial status and are not available to persons under 18 years of age. Quarterly statements are issued to all members, allowing for monitoring of payments to ensure that amendments are made to overall budgeted amounts in line with changes in your expenses.
This service offers members a manageable way to pay their regular recurring household expenses by allowing members spread their payments evenly throughout the year, facilitated by salary deduction or regular lodgement via electronic means (direct debit / electronic funds transfer).
The Budget Account is a payment services account which offers members a convenient way to manage their day-to-day financial needs in a secure, flexible and easy to access way. Members will be issued with the Dubco BIC (Bank Identifier Code) and an account number unique to you known as an IBAN (International Bank Account Number). This will allow you make use of electronic payment services either on a regular recurring or once off basis.
Budget Account Fees
The fees charged for the Budget Account service have not changed in over 20 years and with this in mind the Board of Directors of Dubco commissioned a review on the Budget Fees currently being charged. The Board of Directors have approved an increase in the Budget Fees charged to members and believe that this increase in fees still offers members great value for money with the Budget Account service.
The Board of Directors are committed to offering members the best value services that it can.
The below table outlines the changes to the Budget Account fee structure:
|Old Budget Fees||New Budget Fees|
|Monthly Maintenance Charge Per Budget Account Item||€0.30||€0.60|
|Annual Maximum Maintenance Charge per Budget Account||€18.00||€36.00|
|Exempt from Budget Account Fees – Members Aged 60 years and over||60 and over||68 and over*|
|Interest Charged on Overdrawn Balances – No Change||1% per month||1% per month|
* All existing Budget Account members who are 60 years of age, as at 1st June 2017, will retain the free Budget Account Service.
Use our budget calculator to help manage your bills.
- Step 1: Choose how often you are paid.
- Step 2: Enter the total annual amount you will spend for each item on this list.
- Step 3: Click the Calculate button to work out your weekly/fortnightly/monthly deduction amount.
Many people are experiencing difficulties with their debt in Ireland today, Dubco want you to know that we are here to help should you find yourself in difficulty. The most important step a member should take is to come and talk to us. We will make an effort to find a solution that is mutually beneficial to you, the member, and the Credit Union.
It is important to understand that loan arrears may affect your credit rating and that halting loan payments without talking to us could also result in court proceedings.
So your first step should be getting in touch with Dubco to discuss your financial situation and to find the best solution for you. Below we’ve set out some tips and advice on how best to manage your money; we hope you find it useful.
Review your Finances
Carry out a financial health check to get a complete picture of your income, outgoings, savings and level of debt. You will need to list all of your regular / annual expenses (including outstanding loan and/or credit or store card balances) and then list your income (including any savings). (You can check your Dubco balances here, once you’re registered for online access).
Top Tip: Establish if there are any debts that can be repaid from savings, which will reduce your monthly expenditure. Credit and store cards, for example, can be very costly especially if you are only making minimum monthly repayments.
Work out your Budget
Use a budget planner (check out our calculator here) to work out your budget. Remember, a budget planner is for your own use, so be honest. It is important that you write down your real income and expenditure because you will need to determine your budget based on your income. A budget will help you to prioritise your spending and may assist you in identifying areas that you can decrease spending to help you to make the savings you need.
To prepare your budget you will need to:
- List your regular bills / household expenses, loans, any personal or childcare expenses and any savings or pension contributions.
- Subtract this figure from your earnings (after tax) each month.
- This will give you a realistic indication of any surplus left for personal spending (entertainment / holidays / emergencies / etc.).
Remember when setting up your budget to try and keep it as simple and flexible as possible. Your budget should be regularly reviewed to ensure that where certain items have gone over budget other items are correspondingly decreased.
When deciding how much money to allocate per budget item your past spending is one of the most useful guidelines. Past statements (from credit cards, loan and savings accounts) and bills will be an extremely useful tool for estimating future spending.
Payments totalling €795.00 paid to your provider last year
Increase of 25% has been advised for the coming year
New estimate spending €993.75 based on the same usage
Top Tip: Remember to shop around as there may be an opportunity to switch providers and save money.
Examine your Budget
If you see that you have a problem with your budget, for example you have more money going out than you have coming in, do not ignore this, there are things that you can do to improve your money management.
- See if you can increase your income or decrease your expenses. Make sure you are getting all of your tax relief benefits and (if unemployed, disabled, widowed, etc.) your social welfare entitlements. The Revenue (www.revenue.ie), Department of Social and Family Affairs (www.welfare.ie) and the Citizens Information Centre (www.citizensinformation.ie) all have helpful websites that include information on what you can claim.
- Examine how your money is spent to see if there are any reductions you can make to your expenses. Try to identify areas of your spending where you could possibly cut back.
Dealing with Debt
Because any form of credit is a debt, most of us carry some form of debt. It may be a mortgage payment, a credit card or store card, a personal loan from a credit union, moneylender, bank or building society. Debts are only a problem if you are unable to keep up with the required payments. Whatever level of debt you have, it is important to prioritise your debt.
If some of your creditors are threatening legal action then they need to be addressed as soon as possible as the consequences of ignoring legal issues can be severe. Do not ignore creditors’ letters or phone calls. Ignorance is not bliss, ignoring your creditors will affect your credit rating.
If you are making all of your payments regularly, but are feeling the pressure of a reduced income, prioritise your debts and try to pay off debts with the highest interest rate first. Doing this will save you money as you will pay less interest in the long run.
Dubco will do all we can to help members overcome financial difficulties. Options may include discussing a loan or changing the repayments on an existing loan or facilitating a Budget Plan to help with on-going expenses. We can also help members to get in touch with money advice services such as MABS or Citizens Advice Bureau who may be able to help by providing you with useful financial information. They may be able to assist members with renegotiation or settlement of other debts. Dubco are not in a position to take over the negotiation role of MABS, nor are we in a position to take over all of the outstanding debts members may have.
A self help guide to money management and budgeting is available for download Download Your Self Help Guide to Money Management & Dealing with Debt (298.5kb) and we’ve included some useful Questions and Answers regarding lending and rescheduling here.