How fit are your finances?

Customers can get their finances in shape for summer by spending a few minutes making sure their money is working for them, the British Bankers’ Association said today.

Chief Executive Angela Knight CBE suggested bank customers review their finances in the same way they measure their fitness and talk to their bank or financial adviser just as they would pop in to the gym for a fitness check. The Bank of England chose not to raise interest rates this week, but bank customers should work to prepare for any future move.

Before arranging your appointment with the bank you need to have a clear idea of your monthly income and expenditure and should consider the ‘Fit for Finance’ checklist:

Do you pay your credit card balance in full every month?
Do you know where and how you borrow money?
Do you need to borrow money in the short or long term?
What plan do you have in place to repay any debt?
Are you always struggling to cover debt repayments?

Ms Knight said: “The British Bankers’ Association is recommending customers take a little time to plan their financial needs just as you would consider your physical health. That way you can ensure your finances are in good shape and you have the right banking and borrowing services in place.

“You can go to your bank and talk through your specific needs just as you would go to a personal trainer and talk through an exercise routine. It is vital that you set aside some time every month to review your bank statement. This is the clearest indicator of your financial fitness and can help you to plan your financial needs for the future.”

The BBA suggests using the fitness for finance checklist before speaking to your IFA or bank.