Be proactive with debt, says expert

People looking for payday loans have been urged not to bury their head in the sand when it comes to money problems.

Yvonne Goodwin, managing director of Yvonne Goodwin Wealth Management, said that people need to tackle their debt in a proactive manner.

"Make a list – what you've got coming in and what your outgoings are, including the costs of servicing your debts. This is essential to find out whether your debts are a problem," she said, adding: "If your incoming column is less than your outgoing column, then you have a problem."

She explained that a money problem will not go away on its own and the sooner it is sorted out the sooner people can get on with their lives.

Neil Munroe, external affairs director for Equifax, said that in the early days of money problems, before things start to spiral, people ought to approach the lender to arrange a renegotiation of debt. 

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2011-08-08 13:05:29 © Moneyextra.com