City : Money and Benefits Plus : Top Tips for Managing Debt
Top tips about debt:
- Not all debt is bad, some debt is OK: Don’t be in a rush to pay off your mortgage if you have other debts, pay them off first as mortgages tend to have lower interest rates than other debt.
- Some debt is bad: Credit card debt is the big one to avoid as it tends to have higher interest rates than other kinds of debt.
- Control your spending
- Pay your highest interest rate debts first
- 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.
- Try and avoid taking out pay-day loans if you can