Good planning could help protect against financial problems
Financial solutions company Think Money advises anyone concerned about how they will fare financially in 2011 to take a pro-active approach to getting their finances into shape.
Financial solutions company Think Money has advised anyone concerned about how they will fare financially in 2011 to take a pro-active approach to getting their finances into shape.
The comments come after a survey by R3 found that 43% of UK consumers believe their financial situation will worsen over the next few months, compared with just 24% who think it will improve.
Debt is a major concern for many consumers, with 45% saying they are worried about their current level of debt. Amongst these, 56% are concerned about credit card debts.
An expert at Think Money commented:
"It's no wonder in the current financial climate that so many people are worried about their finances. With inflation increasing and interest rates possibly rising in the coming months, the pressure will become even greater. However, there are plenty of steps people can take to improve their finances.
"First and foremost, we advise consumers to make sure they are financially prepared for a drop in income or a rise in outgoings. A good savings account can make all the difference if these emergencies arise. As such, anyone who can afford to do so should put money into savings regularly.
"Keeping to a budget can also make a big difference. Putting aside enough money for essential expenses at the start of the month can help to prevent overspending and missing important payments.
"Some people may also be able to save significant amounts of money just by cutting back on a few things they don't need, or by switching providers for their energy, insurance and broadband services.
"Of course, the above advice won't be enough to help everyone - especially those with existing concerns about their finances, such as unmanageable debts. Anyone struggling to repay debt should discuss all of their options with a debt adviser. It may be that introducing a strict budget is no longer sufficient and a debt solution, such as a debt management plan or an IVA [Individual Voluntary Arrangement], might now be the better option.
"The key is regularly checking your finances. Ideally, people should always be looking out for areas for improvement - ways to save money, and ways to protect themselves against the unexpected. The more you do to protect yourself, the less likely you are to face problems in the future."
Melanie Taylor
Think Money
Tel: 0845 056 6480
Think Money is one of the UK's leading financial solutions providers, delivering a comprehensive range of financial solutions, including loan, insurance and banking solutions.
Think Money defines its mission as 'To educate, rehabilitate and advise on all aspects of financial management'.
For more information, visit the Think Money website at http://www.thinkmoney.com/.
Think Money debt section: http://www.thinkmoney.com/debt/.
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