City : Money, Housing and Benefits : Debt 5 Top Tips

Money, Housing and Benefits

Debt 5 Top Tips...

money.gif  1) Not all debt is bad

Don’t be in a rush to pay off your mortgage if you have other debts. Mortgages tend to have lower interest rates than other debt, so pay other debts off first!

money.gif  2) Keep an eye on credit card debt

Credit card debt is the big one to avoid, as it tends to have higher interest rates than other kinds of debt. But if you do have credit card debt, make sure to pay it first!

money.gif  3) Avoid Pay-Day Loans 

Pay-Day Loans, liked credit card debt, have a high rate of interest - so stay away unless it's an emergency.

money.gif  4) Control your spending

Try not to spend money that you don't have on things you don't need. Sometimes an emergency means we have no choice - but if you have a choice, don't spend money you don't have!

money.gif  5) Avoid the ‘minimum’ trap 

Try not to always just pay the minimum due on credit-card bills; it will take you years to pay off your balance and will cost you more in the long run.

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