Britons are becoming more responsible when it comes to
managing their finances, an industry expert has asserted.
Speaking earlier this week, James Falla, director of Thomas
Charles, reported that consumers are becoming more
conscious of the effects on their money management that
shopping with store and credit cards can have. He pointed
out that the rates of interest attached to such plastic
cards are "very, very high" and are among the most
expensive levels of all types of borrowing.
Mr Falla also pointed out that a number of consumers are
looking towards taking out a personal loan as a means of
debt consolidation to help them get out of the red. In
addition, he claimed people are beginning to recognise the
need to change their spending habits when aiming to get in
a more favourable financial standing. However, the director
urged those who have taken out a loan to take care that
they do not get back into debt once more.
He said: "It's no good just thinking that you can solve
your debt problem by just getting a personal loan and then
continuing to spend on the credit cards because you end up
with a personal loan and credit cards. I actually think
that people are starting to wake up a little bit, to take a
little bit more responsibility for their spending -
particularly with everything going on around them [within]
the financial environment. People are starting to think:
'What am I going to do when it comes to paying this back?'"
The spokesperson also pointed out that the main reason for
why many people develop unmanageable debt difficulties is
because they fail to fully understand the demands on their
spending. As a result, he advised that taking the time
right now to sit down and work out their personal finances
ahead of Christmas could see Britons find their monetary
situation is in a "very good stage for the new year". Mr
Falla also pointed out that such planning may help
consumers avoid making a fiscal mistake in the present
which will see them make repayments for years to come.
His comments come after research carried out by Thomas
Charles, commissioned by YouGov, showed that 15 per cent of
Britons are in serious debt problems, in which they owe at
least 10,000 pounds via personal loans, plastic cards and
other types of borrowing. Meanwhile, a quarter of consumers
are set to avoid spending with credit cards during the
festive season. The study also indicated that men generally
are further in the red than women.
Although he reported that this time of year is often
financially stressful, people are already looking to take
steps in reducing their expenditure particularly through
expensive methods such as credit cards. The director noted
that consumers are beginning to realise that they can no
longer splash out "willy nilly". Such a decrease in
spending was attributed to many people's monetary standing
becoming "tighter", as well as the impact of the recent
credit crunch which has seen a number of lenders increase
the interest rates attached to personal loans and other
borrowing products as well as using stricter criteria when
judging whether or not to grant consumers credit.
As a result those consumers who are concerned about their
ability to manage their finances and are looking to get
their spending under control ahead of the Christmas period
may wish to take out a debt consolidation loan which could
well leave them with more disposable income at the end of
each month. However, upon receiving such a loan borrowers
should look to ensure that they do not get themselves back
into the red and always make repayments. Speaking on BBC
One's Lunchtime News programme earlier this year, Peter
Tutton from Citizens Advice warned that although most
people can afford to take out loans and other types of
borrowing, consumers can develop financial difficulties
should they receive a demand for payment on something such
as a utility bill which is larger than they had first
anticipated.
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Abbi Rouse writes for All About Loans where visitors can
apply online for tenant loans. We also specialise in
homeowner loans, and self certification loans. Visit
Today: http://www.allaboutloans.co.uk
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