Home » Finance » Personal Finance

Consumers 'Need To Take Steps To Avoid Spiral Of Debt'

Dec 16, 2007
Britons need to get into the habit of safeguarding their financial future, one industry expert has suggested.

According to Colin Jackson, director of Baronworth, discipline is required on the part of consumers if they are to avoid incurring pressure on their finances when they are older and to save money effectively for spending in later life.

Mr Jackson advised people to think about what they want to achieve when saving - whether it is putting funds away for retirement or financing a holiday - and so to choose the product which is right for them. However, should the current difficulties of the public struggling to save, whether on a long or short-term basis, persist, he suggested that "over time it will lead to major problems".

Yet, in taking such time to consider their finances, many may not only find that they are in a more advantageous position in which to invest cash into savings accounts but also become more able to make payments on areas such as loans and credit cards with greater ease.

He said: "The first thing is to get into the discipline of saving. If you decide that you really must save every month it's no good saying that you'll put 10 pounds in a building society account every month, set up some sort of saving scheme where it's paid by direct debit. Once you're into the discipline it becomes part of your general overheads and as far as the money in the bank goes you just pay your savings in each month."

Mr Jackson added that despite the recent credit crunch impacting upon the availability of cheap loans and other competitively-priced lending options, he is sure that "people will continue to borrow". However, he stated consumers using their credit cards to make mortgage payments could find themselves getting into a "spiral" of financial difficulties.

The director reported that as a "lot of people" use such a type of borrowing to meet such demands on their spending, they will often continue to use plastic cards to make up for shortfalls in their income at the end of each month.

In turn, he advised that those doing this "are in the most awful situation" in terms of attempting to get to grips with spending. Consequently, those looking to get out the money management difficulties induced by using several credit cards at once may wish to consider applying for a debt consolidation loan.

Alternatively, many people may find that taking out a personal loan is a more cost-effective option than using credit cards at all in terms of handling spending pressures as the former often carries more competitive rates of interest.

Whether looking to pay off numerous plastic cards at once or free up disposable income to invest into savings and pension schemes, the taking out of a debt consolidation loan could be advisable. And the help with finance that such a loan provides may be of particular help to a rising number of Britons.

A recent consumer confidence survey by GfK NOP revealed that the country's general economic wellbeing stood at -10 in November - the lowest figure noted since March 2003. Thus such a loan may be of use to those aiming at reducing pressure on their spending.
About the Author
Abbi Rouse writes for All About Loans where visitors can apply for personal secured loans and also focuses on loans in the UK , and fast secured loans for UK Homeowners.
Rating:
Please Rate:
(Average: Not rated)
Views: 189
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources