Help with budgeting - first things first

It is relatively unusual for us not to "want" to help someone who comes to us for advice, but this week we sent a man from Aberdeen away - to think again. There were remedies potentially suited to him - he could possibly afford a trust deed but sequestration certainly would deal with the arrears of debt. But we could not say that either was the right thing for him to do. Why? Because he would not face up to the real problem - that we was living outwith his means.

When preparing a trust deed, we take into account certain guideline figures for how much an "average" household of the same size spends on food and household good, on utility bills and mobile phones, on cars and nights out, and on high days and holidays. If someone is over in some areas - sometimes just the knowledge that they are overspending is enough of a wake up call for them to change their behaviour.

Every now and then we meet someone who reacts badly to the guidance we give. This week, we suggested that three adult children had to be made to stand on their own feet. That the father had to stop subsidising them. It is simply not fair on the father's creditors that they do not get paid because the money is being diverted to the "children", but that wasn't why we got tetchy.

An insolvency solution such as a trust deed or sequestration "wipes the slate clean" and you no longer have to struggle to pay the arrears. But you absolutely do need to go into that process with a balanced budget. To be overspending from day one will just mean you are back juggling your debts again in a month or two. That's why we couldn't help - at least not 'til the man from Aberdeen has a wake up call.

If you are determined to improve your financial position, have a look at the Money Advice Service's budget planner and DIrect Gov's managing debt pages. And we really are here to help, so phone our freephone number 0800 881 8709 and prove that you can change your situation for the better.