MP Nadine Dorries will pay back some expenses

Anyone can find themselves in a financial tangle, but there are a few ways to reduce the possibility.

07:50 27 July 2013

People can sometimes run into issues that require them to pay back money. This can come in the form of authorised or unauthorised overdrafts on bank accounts, too much credit card debt, or expenses.

It has been reported that MP Nadine Dorries will need to repay £3,000 in costs, but the investigation concluded that Dorries never attempted to wrongly benefit from her position.

For many of us, we need to try and avoid issues so that we don’t need to pay back money that we may not even have. Here are a few ways to reduce the likelihood of getting into such a financial difficulty:

• Simplify—one of the best ways you can avoid getting into a financial tangle is to keep your finances as simplistic as possible. Limiting yourself to one credit card, and your normal checking and savings accounts makes it a lot easier to track and manage your accounts properly. You can get one particular credit card that can be used anywhere rather than store cards that might charge more interest, or make it harder to keep track of monthly payments.

 

• Splurging—everyone needs to indulge now and then, but setting limits and adhering to them is essential to avoiding financial pitfalls. If you have simple finances it will be easier to figure out if, and how much, you can spend on something extra. You may have to adjust the timeframe on your splurge and save up for it, rather than purchase something immediately.

 

• Internet—using free online banking capabilities is a great way to help you keep track of your financial situation, but you should also keep track of your own expenses so that you can compare the two records. That will give you the most accurate information so you won’t have unpleasant financial surprises.