Budget to cut debt, says charity

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Budget to cut debt, says charity

Tue 2nd Jan 2007

Budgeting wisely is a necessity to herald the start of the new year following a costly Christmas period, according to national money education charity Credit Action.

Debts should be placed in priority order said Chris Tapp, associate director at Credit Action, and spending should be limited in the short-term in order to prepare financially for getting out of debt.

The opening months of 2007 should be spent assessing and addressing personal finances, Mr Tapp says said, especially after it emerged that some people will now be facing "unmanageable" amounts of debt, according to National Debtline, as repayments become hard to pay off.

Mr Tapp said: "It is best to work out the financial situation you are in as soon as possible - then it is easier to do something about it. The crucial thing is to not ignore the problem and to stay on top of it."

He added: "Wherever possible you should be paying off more than the minimum on your credit cards. All too often credit cards are just a way of putting things off - you look like you are doing all right - but you end up paying for that in the long-run."

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