Britons are experiencing an increase in the varying demands on their finances.

Such is the assertion of KPMG, where, pointing to research from the Insolvency Service, it was indicated that consumers are developing more problems when managing their money as mortgage payments are taking up a higher proportion of their income. The current difficulties being experienced in the overall economic market were also cited as reasons for the diminishing availability of cheap mortgage deals and tighter lending restrictions, causing a rise in the problems people are facing in managing their money.

Due to such difficulties with managing money, it could be possible that keeping track of spending commitments such as loans, credit cards, mortgage payments and household bills is an evermore pressing task.

As a result of facing such monetary difficulties, it appears that a rising number of people are taking steps to curb their spending and making informal arrangements with financial providers - rather than filing for insolvency - in order to get back on a firm financial footing. Doing this, it was reported, could help Britons to “avoid the worst effects of over indebtedness” and may mean they do not incur damage to their credit report that filing for insolvency might entail.

Over the course of the three months ending June 30th, it was shown that some 25,783 consumers either filed for bankruptcy or an individual voluntary arrangement (IVA). Such a figure represents a fall from those quoted in research carried out during the same period in 2007 and is also the fourth consecutive quarterly decrease.

Furthermore the firm indicated that an increasing number of homeowners are currently looking to reschedule their debts.

Commenting on the figures, Mark Sands, director of personal insolvency at KPMG, said: “As the first anniversary of the credit crunch approaches, consumers are seeing the cost of their mortgages continuing to eat up more of their income, energy costs are about to leap and food prices are rising in a manner not seen for years. More than one million homeowners face the end of cheap fixed-rate deals this year, mortgage deals continue to be difficult to secure and unsecured lending has tighter restrictions than for many years.”

Mr Sands added that it is important for those consumers facing problems in managing their money to get guidance on all the various options available to them and “then to act on that advice”.

Upon obtaining advice on what their next financial move should be, those looking to get back on to a firm fiscal footing might wish to consider applying for a bad credit loan. By selecting this kind of loan, borrowers may be able to find that they can supplement spending and meet numerous monetary demands. Such a loan could be of particular assistance for those who have struggled with their finances in the past but now believe they will be able to take steps to get back into the black effectively. Writing in an article for MSN Money in June, Naomi Caine reported it is important for consumers take a look at their personal finance circumstances and assess their spending as the global credit crunch takes hold.

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