City : Money and Benefits Plus : Top Tips for Managing Debt

Money and Benefits Plus

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 

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