Consumers 'cautious with spending'

People attempting to repair a bad credit rating may be thinking about taking action such as reducing their expenditure.

Data published by the Finance & Leasing Association found UK adults spent an average of four per cent less on credit cards in November 2011 than they did the previous year.

This might indicate a higher degree of personal discipline in terms of finances, which could be particularly notable in the period leading up to Christmas.

Indeed, some money experts recommended sensible use of credit cards in order to avoid building debt over the festive period.

One way in which this could be achieved at any point over the year is by setting a strict budget plan and ensuring expenditure does not exceed income.

Taking such measures is likely to improve a credit rating, which may help reduce the risk of having applications for other financial products declined in the future

Posted by Tom Burroughs