Think Money

Think Money

December 26, 2010 03:01 ET

Falling incomes call for careful money management

LONDON, UNITED KINGDOM--(Marketwire - Dec. 26, 2010) - Financial solutions company Think Money has called on anyone concerned about the way their finances have changed over the last year to do what they can to get their finances into the best possible shape.

The comments are in response to the latest annual survey of household debt and spending from the Bank of England, which found that more than half of households had experienced a fall in disposable income over the last year, with 28% claiming their disposable income had fallen by more than £100.

Furthermore, 51% of respondents to the survey said their unsecured debt had been a 'burden' over the last year - the highest proportion since the survey began.

A financial expert at Think Money said:

"It's clear that hard times are still upon many of us, and a £100 fall in disposable income is no small matter, especially for people who have already been struggling with their money.

"This should be taken as a reminder for people to take a good look at their finances and see where things could be improved. Now is an ideal time to cut back on those things we don't really need - daily coffees, unused gym memberships and takeaway meals are just a few possible examples. It's also important that everyone runs their finances by a strict budget, to make sure that they always put enough aside for their essential commitments.

"This won't help everyone, though, and there will inevitably be some people who still struggle. Some people may find that things like debt repayments are causing them to spend more than they earn, in which case it may be time to consider a debt solution such as a debt management plan or an IVA.

"Taking just a few minutes each month to try and organise your finances can sometimes make all the difference."

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/.

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