Friday 24th of July 2009
The current recession makes now the best time for people to sort out their finances, a claim has suggested, which could include researching a debt management plan.
Getting monetary commitments organised now could prevent individuals from facing serious financial problems further down the line, Moneywise said, which could be particularly important with the increase in redundancies the country is experiencing.
Drawing up a budget can be one way of doing this, but individuals should remember to include less regular payments and leave room for unexpected outgoings.
"This exercise will, for many of us, turn the spotlight on one major problem - a shortage of cash," the resource noted.
If a monthly budget is not enough to solve financial problems, a debt management plan could prove more effective. By reducing interest and extending repayment periods of debt, households may find this option gives them more room to manoeuvre.
A debt management plan could be particularly useful is an expected £50 council tax rise goes ahead for next year.
By Neil Burton
- Debt consolidation loans falling, figures show
- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Failure to save 'could lead to debt worries'
