Debt Management part 2

56
A worried business man

When you have debts to service, then prioritising what you absolutely must pay (such as a mortgage, rent and utility bills and outstanding tax) can start to put you far more in control of your debt management.

After you have taken control of organising your priority debts, you are in a position to look to dealing with debts that are not a priority but still have to be paid back. These may include credit card or store card debts, payday loans, catalogues that you pay off weekly, building society, bank or other loans, such as personal loans, and overdrafts.

Wherever you can, try to pay off more than the minimum payment due on any of these non-priority debts. Find out, if you don’t already know, which debts incur the highest interest rates and start to pay these down. If you can make overpayments from time to time then do so, though you should always check with your credit agreement to see if there are any penalties for doing this.

The highest interest rates are likely to be for payday loans, so when you consider taking one of these out you would do well to check the website allthelenders, the only comparison website available for short-term and payday loans. You will make much better decisions when you can see all the options available to you.

Credit card interest rates vary and some can be quite high. If you have the option, try switching a credit card balance to a provider that may offer a good period of time, interest free. You are likely to be charged a percentage of the amount of debt you are transferring, but if you do your calculations, you could find out that you can make a significant difference to the amount you have to pay every month.

For debt support, please visit Stepchange for confidential and free advice