Finance squeeze ‘could be causing debt’

This year could be one where many in the public sector are most vulnerable to debt because of their pay freeze.

Founder of Yvonne Goodwin Wealth Management Yvonne Goodwin said this factor combined with high inflation "is one reason why people could be getting into debt".

She said those who are at risk of falling into serious arrears should look towards debt consolidation measures and cutbacks in spending, suggesting that they get a zero per cent credit card "if that is possible" and transfer what they owe to it.

Having got through the current crisis, people should then "reassess" their spending in the future, Ms Goodwin said.

Britons who bite the bullet now and take steps to get their debt under control could find they are in a strong position to enjoy the benefits of economic recovery in the future.

Discussing Britain's prospects in his Conservative Party conference speech this week, chancellor George Osborne said he was determined Britain will not become one of the western countries that fails to reform enough and becomes "poorer and poorer".

Posted by Paul Thacker