Debt Consolidation Can Help Borrowers to Budget
After a survey showed many people in the UK regularly 'overspend', potentially putting them at risk
of debt problems, Debt Advisers Direct said that shoppers should attempt to set themselves a strict
budget to help protect against falling into debt, especially in the run-up to Christmas.
Salford, United Kingdom, January 20, 2010 --(PR.com)-- Responding to a survey that showed many
people in the UK regularly 'overspend', potentially putting them at risk of debt problems, Debt Advisers
Direct said that shoppers should attempt to set themselves a strict budget to help protect against falling
into debt, especially in the run-up to Christmas.
The company added that some people with multiple debts could make their finances easier to manage
with the help of a debt consolidation loan.
The survey by the Co-operative Bank revealed overspending amongst a high proportion of British
consumers. 51% said they were most likely to overspend at Christmas, with 35% saying the same for
birthdays; 34% overspend on holidays; 22% overspend on 'unplanned shopping sprees'; 21% on nights
out with friends; and 19% on clothes.
However, the survey also found that the economic downturn had made people more financially
disciplined on the whole. 72% of consumers said they now spend within their means, while 67% said they
had set themselves a budget, and 86% said they regularly checked their bank statements.
Finally, the Co-operative's survey found that people currently save an average of £219 each month - but
also spend an average of £195 on unnecessary things.
A spokesperson for Debt Advisers Direct said that although the survey revealed some positive signs about
consumers' attitudes towards managing their finances, the levels of overspending are a cause for concern.
"Regular overspending suggests an over-reliance on getting into debt to fund purchases, which is a very
risky way to do things. Making purchases on credit is fine providing the borrower knows they can afford
to repay it, but the lev