KIRSTY APP - Liabilities

These are your commitments. They range from the mortgage on your home to the hire-purchase payments on the car or video, and include anything you still have to pay on your last holiday and the balance (after deposit) on any you have booked for the future.

Don't forget any bank overdraft or outstanding balances on credit cards, and remember any goods bought on interest-free credit. Rates/community charges, water rates and gas, electricity and telephone bills also need to be taken into account. Are you committed to any payments to charities, family members or professional institutions? Are there outgoings such as school fees looming? You could have costs for storing furniture or insuring jewellery. It is very important to know just what you owe and to whom.

Never forget that many liabilities involve regular interest payments as well as paying off the basic sum borrowed. This may seem obvious, but it causes problems for some people.

Money planner - Wealth check Assets

Home (estimated value) - what it could sell for less what is still

owed on mortgage

Car - what it could be sold for

Savings - building society and bank accounts

surrender values of any relevant insurance policies

government stocks, shares, unit trusts and other

securities

other forms of savings

Next:

• Good Money Management - Assets
• Savings And Investments
• www.minesandmoney.com