Further borrowing 'cannot help to tackle debts'

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Further borrowing 'cannot help to tackle debts'

Thu 10th Nov 2011

UK borrowers have been advised that only way to tackle debts is to make changes to spending habits, while taking out further lending to make ends meet is never the answer.

According to editor of CashQuestions.com Annie Shaw, people can put money on credit cards when times are tight, but only as long as they know they can pay of those borrowings in the short-term, as failing to do so can lead to a serious debt spiral.

She noted: "You have to really adjust your lifestyle to your new circumstances which may mean drawing up a budget and trying to cut down on things."

Ms Shaw added that individuals who are facing serious pressure from lenders should always consider seeking independent financial advice in order to resolve their situation.

Figures published by Credit Action recently revealed that debt payments in the UK were down slightly over the last month, with UK households paying total interest of £174 million per day this month - down from £175 million in October.

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