‘Strict budgets’ the best route out of debt

| July 29, 2009 | 0 Comments
'Strict  budgets' the best route out of debt

Sticking to a tight budget is the best way out of crippling credit card debts, a financial advice charity has claimed.

The Consumer Credit Counselling Service (CCCS) said making “a strict and truthful budget” is the “first step” to getting finances in order.

Using a credit card to withdraw cash is a key sign of a consumer in financial difficulty, CCCS said.

The charity issued the warning after figures were published revealing 43% of those in serious debt are too scared to take action.

Fear is the number one concern behind people’s reluctance to openly talk about their financial problems, the talkaboutdebt.co.uk survey found.

Two in five of those polled said they were finding it difficult to move on in life because of debt problems.

“This stigmatism of debt also breeds mistrust – so people [...] find it hard to open up to or to trust a professional debt adviser”, said financial journalist Jessica Bown.

“The main concern is that while the fear factor is preventing people from talking about debt and seeking help, their debts continue to mount”, she added.

CCCS said consumers struggling with debt “need to take steps to confront [the] situation”.

The Citizens Advice Bureau recently revealed that is has received more than 400,000 queries in the last year from consumers struggling to pay back their credit card balances.

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