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Managing your debt

21 Apr 2015

With all the different finance options, it can be very easy to get into debt.

Now, debt is not necessarily a bad thing. There may be occasions when unexpected costs arise such as if your water cylinder explodes and you need to get a new one immediately or a family member becomes sick overseas and you need to get to them quickly, then you may have no choice but to borrow.

However, you should never borrow money for expenses. Expenses are things such as your living costs, nights out, bills - things that leave you with nothing after you've paid for them. Always try to pay expenses from your income and have a spending plan for anything else. If you do have loans, make sure they are repaid as quickly as you can, and always try to pay your credit card in full. It might seem like nothing to put a night out on credit, but if it takes you three months to pay off, the interest that you pay on the card makes that night a lot more expensive! If you do need to borrow, do a bit of planning first. How much do you really, truly, honestly need? Are there any fees or charges? How much is the interest? Will the time you pay it back over be long = more interest paid but lower payments, or short = less interest paid but higher payments? These are some of the things that you should think of when you consider borrowing money.

Planning your spending and reducing your debt quickly will improve your financial position easily!

Talk soon . . .

Money Penny