Budget reviews ‘important’ for indebted Britons

Those experiencing debt management problems have been advised to consider reviewing their budgets with care.

Martin Bamford, a chartered financial planner for Informed Choice, made this suggestion, observing that the second half of the coming year will bring money troubles for lots of families.

This, he continued, will come about as a result of rising unemployment and interest rates, as well as hikes in taxes, all of which will affect disposable income.

“Families will need to carefully assess their levels of committed expenditure and review every item in their budget to work out what can be reduced or removed,” he said, noting that “substantial savings” can generally be made by taking such action.

His comments come in the wake of research conducted by the RAC, which found that certain living costs have increased in the last 12 months, particularly in terms of running a car.

It emerged that fuel prices have been climbing steadily throughout 2009 and are coming close the record highs seen in July 2008.

This, coupled with VAT being moved back to 17.5 per cent in January, suggests that UK adults could struggle financially.

By Sarah Adie