Citizen in Denmark - Ny i Danmark

Managing your personal financesIncome and expensesYour personal finances consist of any assets you may have,your income and your expenses. Income may be salary,self-employment income or state aid. Expenses may berent, heating, electricity, food, clothes and whatever elseyou may need. You must pay income tax and tax on owncompany earnings.Bank accountsElectronic transfersAn ever increasing number of payments are made to payeebank accounts using electronic transactions. This applies tosalaries, cash benefit, child maintenance payments and pensions,for example. This is why you need a bank account.Automatic payment of billsYou can go into any bank and set up an account. If youhave a bank account, you can arrange to have your billspaid automatically from your account.For example, you can set up a budget account to pay fixed overheadssuch as rent, heating, electricity and telephone.Cash cardWhen you open a bank account, the bank will issue youwith a cash card which you can use to withdraw money inthe bank and the bank’s cashpoint machines.Dankort payment card*If the bank gives you a positive financial assessment, youwill be issued with a Dankort payment card. You can usethe card to withdraw money from all the bank’s cashpointmachines and in most shops, and you can use it to payfor goods in most shops. You will be sent a PIN numberwhich you will need in order to use the card in cashpointmachines and shops. Some shops require a signature on aDankort card receipt.Many banks offer a combined Visa/Dankort card. With a Visa,you can pay for goods and services and withdraw moneyin most parts of the world.Bank loans and credit facilitiesYou will need a reasonable, regular incomeBanks provide loans and credit facilities to their customers.But they require customers to have a stable income andsound finances. The bank will assess your personal financesand ask to see copies of salary slips and your final tax settlementfrom SKAT.Bank loan or overdraft?If your personal finances are based on a regular income butyou have a short-term need for extra cash to buy furniture,for example, then a bank loan is usually the best answer.ECONOMY AND CONSUMPTION111