Strapped for cash? Overspent and now broke and can’t pay the bills? If your receiving Centrelink benefits you may be eligible for an advance payment from Centrelink to help you get out of that tight spot.
What is an Advance payment?
An advance payment is essentially where Centrelink pays eligible people a large chunk of some of their Centrelink entitlement now too help them meet immediate expenses. Its definitely not free money as the future payments will be reduced to pay back the money advanced. Typically those students eligible will be able to advance between $250 and $500 and they will only be able to do this once in a year.
While its great to get a big cash injection into your bank account it may only be a bandaid solution!
Why advance payments may only be a bandaid on a larger problem?
Look carefully at how you are spending your money as it’s a real possibility that you could be living beyond your means. That means you are spending more money than you can afford. Think carefully before doing an advance as once the money is gone and if your still spending too much then you could be heading for trouble only now you will receive less from Centrelink each week until the advance is paid back
Importance of Budgeting
To properly understand where you are spending your money it’s a good idea to draw up a budget. What I mean by this not one of those unrealistic budgets that most people never stick too. Mostly these unrealistic budgets involve you permanently sacrificing your social life when you perhaps did not need to.
To do a realistic budget you need to firstly understand how you have spent your money in the present and past. Only then can properly understand how it should be better spent in the future. Take your time and sit down and think about what expenses you have a weekly, fortnightly, monthly or yearly. Write them down or better yet make a Excel spreadsheet. Once you understand where your money is being spent only then can you prioritise how it could be better spent or perhaps not spent at all. Its surprising how many bills you might be able to squeeze down and still get the same value just by shopping around for a better deal.