- Sunday, 28 February 2010There is a "crying need" for British consumers to be provided with more financial education, it has been suggested.
According to Ed Bowsher, head of consumer finance at lovemoney.com, more people with overdrafts are failing to understand the damage to their balance and credit histories that a 19 per cent interest rate can do.
He was commenting in response to research from moneysupermarket.com indicating that five million Brits are permanently in their overdrafts - a factor that could lead more people requiring
IVA help.
Mr Bowsher said: "The secret to good budgeting is knowing where your money goes. Get out your old bills and payslips. Figure out how much is coming in and going out."
He also suggested that consumers should keep a diary of their spending and note down all the purchases they make each month, "right down to a Mars bar or an apple", in order to ascertain which are unnecessary expenses.
According to the moneysupermarket.com, one in ten people live in their overdraft, with 38 per cent having fallen into the red at some point during the past year.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
| |
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ
Consumer Credit Licence Number: 0580960