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Take Control of your debt

31 Jan 2017

Throughout the Christmas and New Year period you can sometimes find yourself building up more debt than you expect.

You may find that you have experienced a credit card blow out over the holiday period. Or, that the hire purchase you had on an initial interest free period is now going onto a high interest rate. With the festive season being traditionally more expensive, it makes sense to make a plan to get out of debt. suggests you:

  • Make a list of all your debts and the interest rate on each one. (Look up the interest rates in your loan agreements or credit card bill.)
  • Identify which debt charges the highest interest.
  • Make bigger repayments to pay off this debt faster. When it’s paid off, start paying more off the debt with the next highest interest rate.

If you do find you need to borrow, do a bit of planning first. These are some of the things that you should consider when you are borrowing money:

  • How much do you really need?
  • Are there any fees or charges?
  • How much is the interest?
  • Will the time you pay it back over be a long period, meaning you pay more interest but have a lower repayment – or a short period, meaning less interest paid but higher repayments?

The New Year is a great time to take care of your money matters and put yourself in control - so take the time now to consider your options, and take action!

Stay safe out there.

Talk soon . . .

Money Penny