Once all the essential expenses are taken care of, just about everyone has a limited amount of money available every month. Managed bank accounts are designed to help those who need to do a bit of budgeting, and would like a helping hand along the way.
Borrowing and debt
If you’re not really sure how much you spend every month, it’s easy to fall back on borrowing from time to time. However, if your borrowing becomes unaffordable, you might have a serious problem.
A bank account that could help you avoid borrowing in the first place is one with no overdraft. Without an overdraft, customers can’t become reliant on one. No overdraft means when the money runs out, there’s no way to borrow more money on the account. Naturally, this can be a powerful reason to budget more effectively and learn to avoid overspending.
How a managed bank account works
This bank account is an example of a type of managed bank account without an overdraft. The ‘managed’ element is that there are real people managing customers’ bank accounts, letting them know if their account is running short for bills and such and helping them to make their important payments on time.
People with busy lives, language barriers or even plain old-fashioned forgetfulness may find their monthly bills and other regular outgoings difficult to manage. A managed bank account can help them to pay all their regular bills on time and in full, with money left over for living expenses.
As with any financial product, make sure you take the time to ‘read the small print’ and understand exactly what you’ll get – and what it’ll cost – before you commit yourself to a bank account of any kind.
Budgeting is certainly fashionable at the moment. Many people are finding they’re in a difficult situation financially for all sorts of reasons: unemployment, the rising cost of living, inadequate pension provisions, lack of return on savings, debt problems and more.
In fact, as long as these issues remain so much in the headlines, we may see more people in debt turning to managed bank accounts for help with budgeting.