Families squeezed as prices increase

People are going to find paying bills and building up funds in accounts with the best savings rates.

David Rodger, managing director of The Debt Advice Foundation, said that due to rising inflation and wage freezes, people are now struggling simply to make ends meet.

He warned that many are turning to credit for necessities like food shopping and phone bills.

"As prices go up and wages remain static and worse still, people find themselves unemployed through no fault of their own, the problem of repaying borrowings becomes increasingly difficult for families," Mr Rodger said.

He added that loans and credit agreements that seemed manageable to start with are starting to escalate out of control due to the current financial climate, leaving little to left for basics, let alone to put into accounts with the best savings rates.

Helena Oades, a nutritionist for Zeal Health, recently suggested that home cooking is a great way to reduce the cost of the weekly food shop.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2011-09-13 13:33:55 © Moneyextra.com