Consumers urged not to get into debt problems through borrowing

Brits have been advised not to plug the gap between the cost of living and salaries through borrowing as this can lead to debt problems.

Such is the advice from Ann Robinson, director of consumer policy at uSwitch.com. She was commenting on the rise in inflation.

It was revealed yesterday (February 15th) that inflation has increased to four per cent from 3.7 per cent in December.

This coupled with the fact that salaries have only increased by an average of two per cent means there is a gap between the cost of living and the ability to pay, which may lead some people to need debt help in the future.

Ms Robinson said: "Rather than continuing to plug the gap by borrowing, consumers should look at saving money wherever possible.

"Stripping down living costs and household bills to the bare minimum can be the lifeline people need to stay afloat."

Moneysupermarket.com recently gave consumers tips on how to save money, including switching to an online energy tariff and using discount vouchers to reduce spending.
Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card... Tue, 22 Feb 2011
Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."..

Mon, 21 Feb 2011
Consumers living with debt problems may want to sign up for the broadband and phone package that Talk Talk is introducing... Fri, 18 Feb 2011
Couples that are going through financial difficulties and seeking debt advice need to be "open and honest" with one another...

View the original article here

Posted in: borrowing,Consumers,problems,through,urged