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Postponing loan and credit card repayments due to tightened budgets after a heavy Christmas spending binge, should be avoided at all costs.

According to a recent report, almost 20% of adults choose to delay payments for ancillary credit such as personal loans and credit cards during January, as a means to reconcile their finances. However, one expert has warned that such actions could almost certainly result in future credit attainment difficulties.

Very few consumers appear to understand just how serious missing loan repayments can actually be, with a recent survey revealing that as few as 10% of borrowers realise that a default or CCJ could stick with them for up to 3 years, after it is issued. The resulting effect of which is that lenders will either charge a higher rate of interest on a new credit agreement, as a means to balance the speculated risk, or in the most severe circumstances, refuse credit altogether.

Commenting on the findings, one expert suggested that rather than bury their heads in the sand, consumers should seek professional help and advice with their financial commitments. There are literally thousands upon thousands of UK residents who struggle to some degree at the start of the New Year, and for that reason it is important to remember that you are not on your own. In the vast majority of cases, there are often simple, practical steps, which can be taken, in order to the get the individual back onto the right path.

New requests for personal loans and credit cards have undergone a noticeable downturn since the start of the New Year, as a response to current economic conditions.

A recent study has revealed that the number of credit hungry consumers within the UK has dropped by almost 20% in the last 6 months, representing the largest credit consumption decline within the past 6 years.

Consumers within the south of the country appear to represent one of the only geographic hotspots where the negative effects of the credit crunch are less of a deterrent. However, it has also been discovered that the same set of consumers are also the most likely to require debt help, with new cases of insolvency at their densest.

It has been noted that businesses operating within numerous different sectors of the retail market will be worst affected by this trend in 2008. Consumers are less willing to purchase items via a credit facility, meaning that many are simply going without that new leather sofa or flat screen TV. For businesses that rely on “attractive” credit facilities as a means to boost stock turnover and oust the competition, the situation may prove to be testing at best.

A substantial inequity of consumer pay is causing great difficulty for a large percentage of Brits when it comes to managing their finances, suggests one source.

One of the UK’s leading financial management charities has discovered that whilst wages in certain parts of the country are rising at a rate, which exceeds the national cost of living, the vast majority of the working population are struggling to keep abreast of it.

The charity suggests that earning imbalances are pushing more people into the red than ever before, as consumers turn to loans, credit cards and mortgage extensions as a means to meet essential living expenses such as rent/mortgage repayments, food bills and clothing costs. In addition, the charity also claims that this factor is one of the primary fuels behind the recent rise in IVA cases and new Bankruptcy hearings.

Commenting on the findings, one expert stated that more than 60% of the British population are managing their personal finances on extremely tight budgets. Increases in the national cost of living are creating tension for those people whose earnings have remained relatively static over the last few years, and it is important for the Government to recognise this problem, but even more importantly, to do something about it. Economists have suggested that a review of the minimum wage would be the most logical starting point.

UK consumers are devoting more research time towards best buys for flights, package holidays and electrical goods, than they are towards sourcing a competitive loan deal.

According to recent data, the average British consumer is prepared to research electrical goods and package holidays for around 10 solid hours each year, compared to a lowly 2 and half hours spent searching for the best loan, mortgage and insurance deals.

Of the demographic, approximately 25% of people will actually spend longer than 10 hours searching for consumer goods (in excess of 13 hours), with only 11% of people prepared to allocate a similar amount of time towards their finances.

Commenting on the findings, one expert suggested that it was only natural for people to put a substantial amount of time into finding the perfect holiday, or even the best TV. However, it is not wise for credit shoppers to accept the first or even second deal that they stumble upon, as they are likely to be paying more than if they were to shop around.

As a collective, some 28% of home loan borrowers are paying above the odds for their plan, with an additional 35% of credit card borrowers identified as not making the most of the deals on offer.

The rising costs associated to higher education are forcing more students than ever to skip the possibility of travelling during their gap year.

Student loans, expensive accommodation fee’s and the prospect of being unable to buy a home for some time after leaving higher education, are the primary factors, which are influencing some 70% of students to revaluate their decision to go travelling.

As an alternative, pre graduates are opting to work long and hard during their gap year, as a means to save as much as possible towards their future. For many, the prospect of attaining a decent sized deposit towards a home loan, thus avoiding unfeasibly large financial commitments at the end of their education has become of paramount importance.

One expert commented that it was truly a sign of the times, where market conditions have become so harsh, that students are now forgoing what is considered by many to be the icing on their educational cake. Good times and new experiences are unfortunately taking a back seat to the commitments of modern life, namely being able to own their own home.