Christmas Borrowers ‘Should Budget Carefully’

Christmas Borrowers 'Should Budget Carefully'

by David Redmond on 30 Nov, 2011

Christmas shoppers planning to spend on credit should think carefully about how they will pay it back in the New Year, financial solutions company Think Money has warned.

With ongoing concerns about rising living costs and a high risk of unemployment, the company said that borrowers should make sure they plan out a budget and ensure their debt repayments fit in with their other commitments.

An expert said: “Financial planning is as important as it’s ever been – especially when it comes to borrowing money. Those of us who are managing well financially may be thinking about making a big purchase on credit – whether that’s home improvements, a new car or a holiday. That’s fine, just as long as those people have planned out a budget and are sure they can afford their repayments.

“Similarly, some people might be making a New Year’s resolution to get their finances in order. For some, that might involve taking out a debt consolidation loan to simplify their finances and set out a clear plan for repaying their debts. This can be a good way of managing debt, but borrowers still need to make sure their repayments fit in with the rest of their budget.”

With the Bank of England’s base rate remaining at its 0.5% all-time low for well over two years now, interest rates on loans and other forms of credit have been falling – making borrowing money an increasingly attractive option for some. But Think Money is keen to emphasise that people shouldn’t borrow money if they have any underlying financial concerns.

“There will be some people thinking about borrowing money because they can’t keep up with their living costs. We strongly advise anyone with financial problems to avoid borrowing more money and seek expert advice instead.”


About the Author

David Redmond

David Redmond is a Partner of Don Gilliard Finance Group. He is a fee-only, independent financial advisor and financial planner. For over 15 years, he has been helping individual investors and their families realize their investment goals.