With so many things to keep track of, it's difficult to watch every cent of your money... Especially when you've entrusted a credible institution like a bank to protect your hard earnings.

But, if you haven't been checking regularly, you may be shocked to discover that the bank could be taking what's rightfully yours. Here's what you need to look out for...

    * ALWAYS check your bank statements. Banks make mistakes like anyone else, though it's ususally in their favour. So keep a note of your transactions, and reconcile them against your monthly statement. If you’re not getting regular statements, phone your bank and sort this out TODAY!

    * Make sure your money is working for YOU. If you always tend to have money in your account, look at the amount of interest you're getting. If you’ve had an account for some time, chances are your bank will have created new accounts with better benefits over the years to woo new customers in. If you see anything better, insist your money is transferred to the better account.

    * Get an overdraft! Now, this may seem like the last thing in the world you’d want to be lumbered with... But arranging an overdraft facility could save you money in the future. If you overdraw without a facility in place – even by a cent.

How to set a bad credit history straight!

If you, like many others right now, find yourself with more debt than you’re comfortable with – and with a bad credit rating as a result – here are a few tips on setting things right...

1. Keep your head
It’s essential you keep calm and avoid panicking, even if the final notices are coming in thick and fast. Remember that ALL problems can be solved with a bit of clear-headed thinking. The battle is already half-won when you believe there's a light at the end of your “debt tunnel”.

2. Don’t put it off another second!
If you think there’s a chance your debts are getting out of control, do something today! A good first move is to check your credit rating. You can view your credit history online by going to the ITC website (www.credithealth.co.za) and paying R79. You'll be surprised how often errors turn up. Check for out-of-date addresses, closed accounts being shown as open and outright false information.

3. Start your ‘payment catch-up’ programme
You first need to determine which debts are most serious. Remember, not all your debts will show on your credit rating report. So look at all your debt, including store credit cards and other small loans aren't always reported.

If there are any past due accounts, contact the creditor directly and let them know you're ready to make amends. If you are unable to pay even the minimum amount on all of your accounts, you will need to look for ways to cut back in other areas of your spending. Lenders want to get re-paid, no matter how little you owe. But they can be flexible if you convince them you’re serious about settling your bill.– your bank will charge you a considerable amount of money. Plus, any cheques or direct debits that bounce will cost you extra.

In the name of wealth, health and happiness, 

Pascale Barrow
Managing Editor of Personal & Finance Confidential