The Budget Money Management Scheme (BMMS) is for 1 year and you can renew again when the 12 months end. Prior to the start, each member estimates the expected annual bills under several headings detailed on the special form provided.
To the total estimated figure of bills a further contingency amount is added (Usually 5%) to allow for unforeseen extra expenses. A small charge is made by the Credit Union for managing the budget and when added to the original estimate and contingency amount the grand total is determined.
This figure is then divided by the number of wage payments the member receives in the year (52, 26 or 12 depending on the frequency of payment).
The resulting sum is deducted at source from wages, salary or pension as decided, by inclusion with the normal contribution to the Credit Union. You can also make deductions by direct debit from your bank account. So you don’t need to make any lodgements or transfers, saving you time and giving you peace of mind knowing that your key bills will be paid on time.
Most importantly it offers a credit facility within the scheme ensuring that household bills do not pile up causing the associated stresses. Our money management scheme is easily adaptable to the needs of each and all.
For as little as 67cents per week you can avail of the full advantages that the Budget Money Management Scheme provides, including it’s credit facility which is charged at a rate of 6.18% APR - which is typically less than half that charged by other financial institutions.
How Are The Bills paid?
Any bills or demands in respect of items budgeted for, are submitted to the Credit Union and can generally be paid directly* to the creditor. Alternatively, the member may collect cheques to the value of the bills made out either to himself or the creditor concerned and personally arrange payment.
- Bills for insurance premiums and motor tax are not paid directly by the Credit Union but a cheque is issued to the member whose responsibility it is to see that it is paid on time. Cheques can be made payable to the company concerned or the Motor Taxation Office.
- Where a standing commitment is involved such as that for Phone, Electricity, Mortgages or Hire Purchase, the Credit Union will pay the demand by group cheque, credit transfer or direct debit.
- Where direct debit facilities have been arranged, it is not necessary to submit the regular bills to the Credit Union for payment.
- For personal withdrawals, advance notice may be required before a cheque can be issued.
Getting Updates On Your Budget
Participating members are issued with a statement of their Budget Facility on request as well as being issued twice yearly.
In addition to showing the ‘Money In’ and the ‘Payments Out’ to date, the statements also give you a clear view of the overall balance, and the individual balance remaining on the items budgeted for, so that you can adjust withdrawals or payments accordingly.
Important - Renewing Every Year
It is very important to renew participation in the Budget Money Management Scheme on time each year updating contributions and planning payment in accordance with your expected financial activity for the year ahead.
Members may join the Budget Money Management Scheme in any month and be included for 1 year but the account must be renewed annually. Failure to do so may affect standing order payments such as mortgages or life insurance.
What Happens If I Have Funds Left Over?
Members lucky enough to have a surplus at the end of their budget year will carry the balance over to their new budget or it can be refunded if required.
For further information, please call us.