It has been claimed that UK consumers arent monitoring their finances enough and
this is primarily leading to the huge debt crisis among individual consumers. To manage debt efficiently customers should consistently monitor their finances in order to ensure they do not go into debt, it has been claimed.
David Rodger, managing director of the Debt Advice Foundation, has warned that "financial problems don't simply go away" if they are ignored. Most of the consumers put their debt into the back burner till it aggravates into a major debt crisis. Many consumers end up with poor credit score due to this compounded ignorance.
He said: "For anyone who is struggling with their finances, it's even more important to know where you stand; not only to ensure your priority are debts being paid but also because you may be able to identify specific periods during the month that are causing your problems." The recent economic downturn highlighted these problems as both the lenders and the consumers were in a fix with the fear of job cuts and high interest rates.
His comments came in the wake of research by myvouchercodes.co.uk which has revealed that 51 per cent of British bank account holders ignore letters sent to them by the bank. This has become a worrying factor for most of the financial planners who deal in debt management. They are finding it extremely difficult to manage the debt of consumers who are completely ignorant about it.
Furthermore, 24 per cent admitted that they never open their bank statements as they are worried about the state of their finances. Mr Rodger added money problems will only worsen if they are not confronted due to mounting interest and administration charges. The debt management firms are trying to make their clients aware of the importance of monitoring finances. Ignorance has become the biggest threat in strategic debt management in the United Kingdom.