'Stop spending and admit to debt'

By Sarah Engle, Fri 26 Sep 2008 - Published in Banking

People who keep spending despite being in debt need to face up to their financial situation, it has been claimed.

According to Derek Oakley, operations director at Debt Free Direct, the problem is increasingly common in the UK and more people are becoming concerned they cannot meet their financial obligations.

Claiming the first step to deal with debt is admitting it, Mr Oakley added: "Those people who continue to purchase luxuries such as restaurant meals while in serious debt are perhaps those people who haven't yet faced up to their financial situation."

He also called on people to seek advice over the money they owe, even though it can be "uncomfortable" or "frightening".

The Consumer Credit Counselling Service recommends people in debt use budgeting to help control the problem, as it will give them a more accurate picture of their financial position.

In addition, the charity points out that budgeting can help money go further, act as a curb on impulsive spending and reduce stress.

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