Credit use may lead to debt help

UK households should try to cut back on the amount of credit they use this Christmas, if they want to avoid having to seek debt help such as an IVA, in the New Year.

This is the verdict of David Rodger, managing director of the debt advice Foundation.

He thinks that families stretching budgets should write down their potential debt reasons this winter, as part of their own debt management measures.

Mr Rodger made the comments as the Family and Parenting Institute said many families are cutting back on expenditure this festive period, in order to avoid debt problems.

Kevin Still, Director of Atlantic Financial Management says: "The latest Credit Action figures for December show that the average unsecured debt in the UK is £17,825 for those households that use credit. This figure has gradually reduced through the recession, however, The Office for Budget Responsibility (OBR) predicts that UK household debt will be £1,823 billion by the end of 2015, which is a growth of £159m a day. A debt spiral can easily occur if tight budgeting is not maintained."

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