Savings and disposable cash 'should be used to cut debts'

Consolidation can be an effective means of getting to grips with credit cards and other forms of unsecured debts.The typical Briton, at present, is a total of some £9,255 in the red, with this figure including an average of £1,384 owed on a cred

As the financial crisis continues to rumble on, people should make getting to grips with debt their number one target.

With Britain in a state of recession, having "as little debt as you possibly can" is something all Britons should aspire to, Martin Lewis, of MoneySavingExpert, writes in the Manchester Evening News.

As such, the repaying of credit card and other debts through the use of any disposable income or cash placed in savings accounts was advised.

However, as he acknowledges this could be difficult for some people to achieve, Mr Lewis recommended borrowers consider a balance transfer.

"In which case, the aim is to do a debt audit and ensure all your debts are as cheap as possible," he claims. And after getting themselves out of the red, he advises people build up a "cash emergency fund", for which a savings account could prove to be useful.

Similar comments were recently put forward by David Kuo, head of personal finance for Fool.co.uk, who urged any disposable income people have their hands on to be put towards servicing their debts.