Create a Budget to Clean Up Finances

Posted 2008-01-10

A year-long budget that includes all annual expenses might help Britons who resolved to gain control of their finances this year.

 

The Consumer Credit Counseling Service (CCCS) advises people to plan ahead to cover regular expenses throughout the year.

 

People who take the time to write down a budget for every month of the year will benefit, says Frances Walker, a spokesperson for the CCCS.  The exercise will let them identify ways to maximize the money at their disposal.

 

If people are using more than 20 percent of their annual income to make repayments on loans, they have borrowed too much, says Ms. Walker.  A debt consolidation loan with a single monthly payment may help remedy this situation.

 

Data collected by Credit Action indicates that debt in the UK amounts to £1,400 billion.

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