How To Save Yourself From Debt

Article Written By: BrookeWebb

Recent figures released by the Office of National Statistics suggest we may finally be heeding Government advice to switch from a nation of spenders to a nation of savers. The figures show the average UK household saved 8.6% of their income in the three months to September. This is the highest level for any quarter in over 10 years.

However, many economists believe that saving has come too late. Fears abound that saving now might actually make the recession last for longer. The UK is one of the last major global economies to still be languishing away in recession, i.e. negative or no economic growth.

We need consumer spending now to give fuel to the economic fire to kick start our economy into life. But there are also signs that consumers, once again, are starting to have faith in the economy. Consumer spending rose by 0.1% in the third quarter of 2009. With interest rates remaining low, emphasis for the future is on spending not saving. The balance between saving enough and only spending what you have seems to be a rather tricky concept for much of the population to grasp. Spending is fine as long as you have the money in your savings account to start with.

According to Money research, 31% of adults were worried about paying for Christmas, but only 15% made an effort to save for it. At the same time, 4.7 million adults are still paying off debts from last Christmas. Something has to give. This year, for many people, a debt management plan and better financial planning should be of a high priority. By spreading the cost over a longer term, a debt management plan will allow you to reduce your monthly repayments to a manageable level.

A debt management company can negotiate with your lenders on your behalf and help with the day-to-day running of the plan. They are also better equipped to deal with any problems and are more likely to secure a better rate than if you were working independently.

About the Author

Kristan Brangers has recently been looking into debt consolidation offered by Baines and Ernst and is now using their debt management service.

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