Savings should be your first choice when paying doctor’s bills and are defined as accumulated income or earnings which are surplus to your living costs.

A savings account can free you from the stress of living from one pay day to the next and helps you deal with large bills or unexpected expenses.

Your savings can include:

1. Savings accounts with a bank, building society or credit union.

2. Special purpose savings accounts such as high interest with regular deposits or particular goals accounts e.g. Christmas club or travel.

3. Term deposit accounts which money is deposited into and only taken out at the end of a set term which can range from 30 days to five years. These pay you higher interest rates than normal bank accounts and usually you’re able to withdraw money in an emergency but check what penalties may apply.

Centrelink has a Financial Information Factsheet which you may find helpful: ‘How to Save on Fees and Charges’ http://www.centrelink.gov.au