People need to understand their finances and budget, says expert

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People need to understand their finances and budget, says expert

Wed 11th Nov 2009

It is vital that people learn to understand their financial situation and budget accordingly, as many cannot get to grips with how long it takes to pay debt back, according to the Debt Advice Foundation (DAF).

David Rodgers, managing director of the DAF, fears that as high street credit dries up, those in serious debt will turn to unregulated sources of credit, like loan sharks, for help.

The charity recommended that people worried about their finances should seek expert help and that "debt denial", where consumers hide their debts from family and friends, will become a thing of the past.

Mr Rodgers hoped that lenders will become more open to providing debt solutions.

"Debt solutions, which aim to return some of the debt to the lender and to provide financial rehabilitation for the individual involved, should come much higher up the agenda," he saids.

His comments followed a PricewaterhouseCoopers report on credit cards, which found consumer borrowing from them is now at £64 billion, a three per cent drop on last year. The number of cards in circulation has decreased by eight per cent.

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