Expert: Setting a budget is essential for struggling families

Households struggling with debt should set themselves a strict budget, it has been said.

Families finding it tough to deal with debts accrued on credit cards throughout the recession should take the time to draw up a strict budget, an expert has said.

In recent times, many households have been forced to resort to borrowing on products such as personal loans in order to make ends meet, as the growing cost of essentials like gas and electric continues to wreak havoc with their finances.

However, while it can sometimes feel as if there is no light at the end of the tunnel in terms of debt, David Rodger, managing director of the Debt Advice Foundation, has offered some tips on how people can stabilise their situation.

"It sounds obvious, but all too often people struggle to find the time to create a budget plan, but it really is the first thing to do," he noted.

This comes after Jonathan Davis, economist and managing director of Jonathan Davis Wealth Management, said affordable credit is not the answer to the UK's debt problems.

By Mark Hornby