Monday 24th of January 2011
People in the UK who are already deep in the red may find 2011 is the right time to start thinking about asking individual voluntary arrangement questions, as it has been recommended people start making tough financial decisions sooner rather than later.
Chartered financial planner and managing director at Informed Choice Martin Bamford claimed families need to map out their budget to ensure they are consistently spending less than they are earning.
The industry expert advised households to create an emergency fund that can then be used to help pay for any unforeseen expenditure.
He observed: "This can be an uncomfortable experience for some families, as tough decisions need to be made about how money is spent."
Such an approach, however, will be seen as a worthwhile exercise in the long-term, Mr Bamford added.
The expert's comments come after Richard Thompson, a partner at PricewaterhouseCoopers, recently noted January is often a time when consumers reflect on their financial position.
By Ashley Littley
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