Don't Turn to Credit to Get Out of a Tight Spot - Get Help
Financial solutions company Think Money advises people with financial concerns to avoid taking on additional credit in a financial emergency.
Salford, United Kingdom, June 21, 2011 --(PR.com)-- Financial solutions company Think Money has advised people with financial worries to resist the temptation to turn to credit to get through a "tight spot."
The company said that although it may help in the short term, taking on additional credit while experiencing financial problems could make the situation a lot worse in the long run.
The comments come after a report by R3 found that around 6 million people in the UK are currently behind on bills and other payments - with 2 million expected to go into an unauthorised overdraft this month.
An expert at Think Money said:
"We all come across unexpected costs from time to time, and many people's first reaction is to turn to credit to bridge the gap. As long as the borrower can easily afford to repay it in good time, this shouldn't cause any problems: for example, credit card debts that are cleared before the end of the month won't attract any interest.
"However, problems can start when people already experiencing financial difficulty feel they have no option but to get into more debt to cover their costs.
"This can be especially tempting if you already have a credit card or overdraft at your disposal. But we urge people in financial difficulty to resist this temptation and instead get advice from an expert.
"An expert financial adviser can help people find the right way of improving their situation. For example, people with unaffordable debt repayments might benefit from entering into a debt management plan or an IVA (Individual Voluntary Arrangement).
"But a bit of advance planning can often prevent people getting to this stage. For example, regularly putting money into savings could help people manage any unexpected costs, thereby avoiding the kind of situation where borrowing more money becomes a consideration."
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Notes to Editors
Think Money is one of the UK's leading financial solutions providers, delivering a comprehensive range of financial solutions, including loan, insurance and banking solutions.
Think Money defines its mission as "To educate, rehabilitate and advise on all aspects of financial management."
For more information, visit the Think Money website at http://www.thinkmoney.com/.
Think Money debt management section: http://www.thinkmoney.com/debt/debt-management/
The company said that although it may help in the short term, taking on additional credit while experiencing financial problems could make the situation a lot worse in the long run.
The comments come after a report by R3 found that around 6 million people in the UK are currently behind on bills and other payments - with 2 million expected to go into an unauthorised overdraft this month.
An expert at Think Money said:
"We all come across unexpected costs from time to time, and many people's first reaction is to turn to credit to bridge the gap. As long as the borrower can easily afford to repay it in good time, this shouldn't cause any problems: for example, credit card debts that are cleared before the end of the month won't attract any interest.
"However, problems can start when people already experiencing financial difficulty feel they have no option but to get into more debt to cover their costs.
"This can be especially tempting if you already have a credit card or overdraft at your disposal. But we urge people in financial difficulty to resist this temptation and instead get advice from an expert.
"An expert financial adviser can help people find the right way of improving their situation. For example, people with unaffordable debt repayments might benefit from entering into a debt management plan or an IVA (Individual Voluntary Arrangement).
"But a bit of advance planning can often prevent people getting to this stage. For example, regularly putting money into savings could help people manage any unexpected costs, thereby avoiding the kind of situation where borrowing more money becomes a consideration."
###
Notes to Editors
Think Money is one of the UK's leading financial solutions providers, delivering a comprehensive range of financial solutions, including loan, insurance and banking solutions.
Think Money defines its mission as "To educate, rehabilitate and advise on all aspects of financial management."
For more information, visit the Think Money website at http://www.thinkmoney.com/.
Think Money debt management section: http://www.thinkmoney.com/debt/debt-management/
Contact
Think Money
Melanie Taylor
0845 056 6480
http://www.thinkmoney.com/debt/
Melanie Taylor
0845 056 6480
http://www.thinkmoney.com/debt/
Contact
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