Britons should look to take steps in reducing monetary pressure, an industry expert reports.

According to Chris Tapp, director for Credit Action, many consumers may be witnessing an increase in the financial demands placed upon them as they face up to their overspending during the Christmas and new year period. As such, it was claimed that more people will be looking to reduce their expenditure and save more money. Furthermore, it was also claimed that predicted rises in inflation rates could put more strains on people’s capacity for money management.

Meanwhile, the continued impact of the credit crunch was said to be reducing the availability of various forms of competitively-priced borrowing as the general economy diminishes. In the past, he reported, such credit has may have been used by those looking to supplement their spending. Now it was claimed those people who do need to borrow are increasingly being forced to “look elsewhere for higher cost alternatives”. This is something Mr Tapp claimed could affect their ability to make payments on their mortgage.

In addition to facing difficulties in meeting mortgage repayments, it is also possible that people will encounter problems with other financial demands, such as loans, plastic card repayments and household bills. “It’s likely to be a year in which, as the economy more generally slows down, the rate of borrowing will - to an extent - slowdown with it.”

He said: “There is concern that in the run-up to Christmas there was a little bit of a jump in the rate of people borrowing and it could squeeze people’s budgets month by month. Utility costs are going up and [so is] the cost of food. As inflation kicks in, people find that more of their take-home salary is taken up paying for day-to-day expenses, so they are forced to use their credit card more than they would have done previously just to get by month-to-month.”

The Credit Action director went on to report that people could find themselves in a “very worrying scenario” either if they are regularly using their credit card to meet mortgage payment demands or are unable clear of their plastic borrowing debts. Should borrowers find themselves in such a position, Mr Tapp urged them to seek financial help immediately. However, he claimed that meeting mortgage payments should always be the main priority for consumers - demands for which should be met before other borrowing commitments such as personal loans and plastic cards.

For those who have had experienced problems with their money management in the past applying for a bad credit loan may be a useful way to supplement spending. This type of loan could be of particular assistance to consumers who have had previous financial difficulties but are now confident that they can keep up with demands for payment. An adverse credit loan might prove to be especially helpful to people living in Northampton. Recently-released figures by the town Citizen’s Advice office reveals that out of the 4,665 people visiting the branch during the past 12 months, about a fifth of these claim to have money problems. Overall, such consumers are a total of 10 million pounds in the red.

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