City : Money, Housing and Benefits : Debt 5 Top Tips
Debt 5 Top Tips...
- 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!
- 2) Pay your highest interest rate debts first: 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!
- 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.
- 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!
- 5) Avoid the ‘minimum’ trap: If you 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.