Next year will be 'tough' financially

Next year is likely to see many people's finances stretched, but consumers ought to look to reduce their dependency on credit, one expert has suggested.

Susan Hannums, Savings Manager at AWD Chase de Vere, said that it was 'no secret' that many people are expecting to find next year 'tough' when it comes to their finances.

With energy prices rising and a number of fixed-rate mortgage deals coming to an end, Ms Hannums suggested that it would harder for people to put money aside in savings.

However, despite these conditions, people ought to look to pay off their debts and move away from using so much credit, she stated.

'I think that's really what got us here in the first place so we need to think of other methods and hopefully turn things around,' Ms Hannums commented.

According to figures produced by Credit Action, the UK's total personal debt at the end of October stood at £1,391bn.

Graduates leaving university with debt tend to owe an average of £12,363, with 54% of graduate leaving with debts of more than £10,000.