Consumers 'need to take charge when tackling debts'

by Sam Gooch

Although getting to grips with debt can be a difficult process, consumers are advised that it is possible.Britons concerned about how they will get on to a firmer financial footing this year should first take stock of the exact scale of their debts.So highlights Sarah Pennells of SavvyWoman.co.uk in an article for the Sun.Noting that people keen on getting a handle on money management should first establish how much they owe and who to, consumers are advised to write down their indebtedness on credit cards, personal loans and other forms of unsecured credit on a piece of paper, while also making note of the rates of interest attached to each of their debts."Once you know the interest rates, write down your debts in order from the highest charge to the lowest. Work out how much you can afford to pay each month and pay as much as you can to the card charging the highest rate," Ms Pennells points out to the publication.However, while concentrating on the most expensive debts was recommended, people should also ensure they make at least the minimal monthly repayments on all their other financial commitments to avoid being hit with late payment fees.Such advice comes as the news resource indicates that while getting on top of money is often a popular new year resolution "it can also be one of the most difficult to get to grips with".Those keen on ensuring they do not develop further debt problems as the year progresses may wish to make note of recommendations to set up - and stick to - a spending diary, as doing so can help people keep track of which areas their money goes on.And being prudent with credit card purchases may be advisable as consumers are told that if they know they "get carried away when shopping with friends, keep temptation out of the way".The latest Nationwide Consumer Confidence Index saw 35 per cent claim December was a good time to make a major purchase, as the sub-index monitoring spending attitude fell one point over the month to register a score of 106.


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