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Budgeting 'can help people who rely on credit cards'
Households who use their credit cards to pay for their everyday essentials need to sort out their finances so they do not end up in serious deficit problems.
Liz Dunscombe, director of project and partnership development at Credit Action, said making a budget was one way to alleviate monetary pressures.
"Examine whether money is being spent on non-essentials," she stated.
Ms Dunscombe commented that looking at what is being spent over a period of time can be a "very enlightening experience".
Those who are suffering a short-term loss of income and are paying for everyday expenses on their credit cards were advised to borrow money in the "cheapest form available".
She went on to say households who take control and limit the damage caused by a temporary financial crisis will be able to make a quicker recovery than those who rely too much on credit and have to face the consequences of paying high interest rates.
Her advice could help a number of people after Credit Action recently revealed that households in the UK have an average debt of £55,822, including mortgages.
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Liz Dunscombe, director of project and partnership development at Credit Action, said making a budget was one way to alleviate monetary pressures.
"Examine whether money is being spent on non-essentials," she stated.
Ms Dunscombe commented that looking at what is being spent over a period of time can be a "very enlightening experience".
Those who are suffering a short-term loss of income and are paying for everyday expenses on their credit cards were advised to borrow money in the "cheapest form available".
She went on to say households who take control and limit the damage caused by a temporary financial crisis will be able to make a quicker recovery than those who rely too much on credit and have to face the consequences of paying high interest rates.
Her advice could help a number of people after Credit Action recently revealed that households in the UK have an average debt of £55,822, including mortgages.
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Published: 12/10/2011
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