People with debt 'need to learn how to deal with their finances'

An expert has spoken about debt in the UK.

Consumers with debt on their credit cards or current account must learn how to deal with their financial issues more effectively in the aftermath of the global economic downturn.

That is according to George Currie, founder of online resource Debtwatchdog.com, who has said that people need to be more aware of such problems should they have overspent on personal finance options such as personal loans.

Mr Currie noted that it is important for savers to gain a more thorough understanding of their individual monetary situation in the wake of the recession, as doing so can help them to avoid falling into further financial trouble in the future.

"We always recommend encouraging people through knowledge," he stated.

The expert went on to explain that creating a budget or jotting down all monthly outgoings might be the best way to do this, as having a written record of expenditure should make it clear "where the money is going", meaning that plans can then be drawn up to reduce debts through using disposable income.

These comments came after the publication of a report conducted by unbiased.co.uk earlier this week (December 7th 2010), which found that Britons repaid ten pence of debt for every pound they saved throughout the third quarter of the year, a figure which represents a drop of eight pence per pound in the previous three-month period.

And the specialist stated that this trend should not continue, as the most effective method of dealing with debt is to deal with it quickly and proactively rather than allowing it to spiral out of control.

"It empowers you and it makes you think about your finances yourself rather than leaving it for other people to deal with," he concluded.

Meanwhile, research by My Voucher Codes found recently that 86 per cent of people in the UK owe money in some form.