Addressing bills 'the only way to reduce debt'

Consumers aiming to get out of debt must directly confront the challenge, even when the numbers make painful reading, it has been claimed.

Writing for the Daily Mail, Ali Steed and Liz King of My Money Diva commented that individuals must study their bills rather than "bury their head in the sand".

Offering debt advice, they claimed that "looking at the scary figures on the credit card bills" is the only way to fully assess your financial situation.

The writers added that it is necessary to consider all your other bills too, including any mortgages, car loans, insurance payments, utility, phone and any satellite or cable TV bills.

"To save the most money, consider your finances as a whole, not individually, Ms Steed and Ms King advised.

Last week, Eoin Hamill, research and policy officer at Credit Action, said it was too early to say for sure whether consumers have been taking notice of debt advice during the recession.

He claimed that the lack of available credit at present may disguise consumer's true intentions, meaning that lending will pick up again when confidence returns to the banks.

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2009-10-12 13:13:31 © Moneyextra.com