Planning Ahead Gleans Financial Security

Posted 2008-01-10

With the total UK debt standing at £1,400 billion - according to Credit Action figures - many Britons are being advised to create hard-fast budgets for 2008 to ease financial strain.

 

The Consumer Credit Counselling Service (CCCS) recommends making a 12-month budgeting plan which should include all annual debts, including car insurance payments and quarterly bills, and then dividing by 12 months to establish monthly needs and avoid much financial anxiety.

 

“Sit down and do a budget,” recommended Frances Walker, spokesperson for CCCS, who also added, “You need to do an annual budget and then divide it by 12 so that you take account of things.”

 

Many Britons making New Year resolutions have promised to gain control of their financial worries – and for those who stick to it, will surely feel some financial ease by the end of the year. Ms. Walker stated that people paying over 20% of their incomes towards monthly repayments are overextending themselves.

 

Ms. Walker added, “It is also a good time to look at income maximisation.” As households are better able to forecast expenditures, many will see their incomes being used more effectively.

 

For those with existing debt and seeking to lower monthly outgoings, a consolidation loan can be a reasonable way to reduce monthly repayments and ease budget strain

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