Debt management plans could help keep finances under control
Debt management plans could help keep finances under control
- Tuesday, 22 December 2009Debt management plans may be needed to help families struggling with their finances.
According to Jasmine Birtles, founder of consumer website Moneymagpie.com, the most important thing for a household when formulating a budget was to pay off any debt.
"That's really, really important. If they have got
credit card debt then that should be their first focus. All that money that they have to play with, I would say you can't play with it you have to pay off debts, thats the way it has to be," she said.
Ms Birtles also advised people to put aside enough money to cover them for at least three months worth of bills, and to have a clear idea of how much money is coming into the household each month and what is needed for essentials.
Research by the Financial Services Authority (FSA) found that 14 per cent of people do not keep track of their spending habits at all.
Additionally, one in six parents reported they had struggled with money in the last year, and three per cent said their finances were so bad they had to seek advice from lenders about repayment options.

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