Annual Budgeting ‘may sort out finances’

Posted 2008-01-10

Cash-strapped Britons need to spend more time planning ahead, a counselling service says.

People with outgoings such as annual car insurance payments or quarterly bills could find it useful to work out 12-month plans, the Consumer Credit Counselling Service said.

Frances Walker, spokesman for the service, said people need to sit down and do a budget, saying: “You need to do a yearly budget and divide it by 12 so you take account of everything and it’s also a good time to look at income maximisation.”

She added people paying over 20 per cent of their income towards monthly repayments are overextending themselves.

Britons are currently carrying a total of £1.4 billion in debt, according to Credit Action figures.

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