Debt advice: 'Better budgeting could reduce debt'

26/02/2010

A member of a leading financial website has encouraged people to learn better budgeting habits in order to avoid personal debt.

Ed Bowsher, head of consumer finance at Lovemoney.com, advised people to monitor their old payslips and bills in order to work out what they are spending their cash on.

This could then enable them to spot any unnecessary purchases which they could cut out to in order to save money

Running a structured debt management scheme in conjunction with good budgeting practice could be one of the fastest ways out of debt.

Mr Bowsher added that better financial education would also help to reduce the number of people with debt problems.

The consumer finance expert said: "There's a crying need for better financial education in this country. I fear that many people with overdrafts just don't understand the damage a 19 per cent interest rate can do.

His comments follow the recent publication of research which revealed that five million Britons are permanently living in their overdraft, risking high and unnecessary rates of interest.

By better managing their finances and switching to a current account that was tailored to their needs, people could save up to £240 a year.

Posted by Fiona Smith

Tags; Budgeting Advice,

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