Plan your finances in case the worse happens to avoid debt problems
Plan your finances in case the worse happens to avoid debt problems
- Wednesday, 6 October 2010Consumers should start planning ahead and put financial provisions in place to avoid
debt problems in case the worst happens.
The worst could mean losing a job and being faced with unemployment, which means a consumer may not be able to pay off their bills if they do not have a safety net.
Martin Bamford, chartered financial planner at Informed Choice, stated that consumers should try and become debt free before starting to save.
He said: "It is important that financial planning always starts with paying off expensive debt.
"It is a bit futile when you are planning provisions for emergencies if you're paying off things like credit cards and personal loans at very high interest rates."
Mr Bamford added that it is important to plan for the worse rather trying to make the best of it if it does happen.
His comments follow a press release by Scottish Provident, which found that nearly four million Brits could only maintain their current standard of living until February next year if they used their emergency provisions.

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