Debt Charity Urges Brits To ‘Spring Clean’ Their Finances

Debt Advice Foundation, a national debt charity, finds that people often fall into the pitfalls of debt because of money management issues – and is therefore calling on people to spare some time for their finances.

The charity has found that on average, people who have contacted its helpline are juggling payment commitments with more than seven creditors and have £29,436 of unsecured debt (not including mortgages and other secured credit); with many struggling to keep up with payments.

David Rodger, Managing Director of Debt Advice Foundation said: “Busy lifestyles and family commitments make it easy for people to lose track of their finances, which can often lead to debt and cash-flow problems.”

“In many cases, serious debt problems start as money management issues or overspending. That’s why it’s so important to stay on top of money matters; and spending an hour ‘Spring Cleaning’ your finances could prove to be an extremely good investment of your time.”

Here is Debt Advice Foundation’s step-by-step guide to help people ‘Spring Clean’ their Finances this Easter:

  • Calculate your monthly income: Such as wages, job seekers’ allowance, income support, child benefit, tax credit and pensions etc.

  • Make a list of your outgoings: Such as mortgage payments, rent, council tax, water rates, energy bills, housekeeping, travelling expenses, clothing and child care etc.

  • Look at what you owe: Including debts on credit cards and loans, as well as mortgage arrears and other payments which you have fallen behind on.

  • Establish your budget: Debt Advice Foundation has a free ‘Budget Calculator’ tool on its website, which will calculate all your income and outgoings, so you can see what is left over or whether you are overspending.

  • Take action: Your budget may enable you to start saving some of your surplus income, it could also highlight areas where you could reduce some of your outgoings and in some cases it may indicate that debt advice should be sought.

Click here to read the full press release.