Key Ways to Beat Debt
Make no secret about it, debt is a virulent disease, and where you have debts that you don’t need you’ll effectively be paying for nothing. It must be said that some debt is inevitable, especially if you have to look after more than just number one. Unless you’re extremely wealthy, then taking out a mortgage and having children is sure to sometimes push your spending over what you earn. However, there are plenty of ways to at least escape some of your debts, so that your spending won’t just be to pay off interest payments and bills. Here are some top tips to get you started.
Stop Using the Credit Card
Credit cards are the kings of interest repayments. With most cards charging an annual rate of some 15% or more, you’ll quickly find yourself paying extra for your spending if you have outstanding balances. So, unless your card(s) gives you excellent perks that are worth their weight in interest, pay it all off as soon as possible and then cut it up.
Consolidate and Pay Off Debts
Paying off substantial credit card debts across multiple cards doesn’t really make sense. Unless you have a poor credit rating, consider getting a new credit card with 0% on balance transfers and use this to pay off the other cards, and then close them. If you’re you have card debts of over £5000 then you may want to consider a loan to help you. Loans typically come at an APR of 7 – 10%, so it’s a good way to consolidate debt. If you’ve got debts, then don’t put money into your savings, AERs are normally always lower than APRs, so pay off debts first. If you’re looking for debt consolidation check out ASDA Finance, they offer unsecured loans and 0% credit cards at low APRs that may be able to help you.
Shop Around for Financial Products
If you’re like 1.4 million Brits set to come off their fixed rate mortgage this year then you’ll be in need of refinancing or you’ll be hit with an average increase in interest payments of £140 per month. Take your time at shop around for mortgages, and make sure you get the best deal. Don’t stop being the inquisitive shopper there either; there are loads of other financial products where people miss out on huge savings of hundreds of pounds. Take a look at ASDA Finance again and compare your car insurance and home insurance with their products. Nine out of ten customers save by using this website.
Take Your Time and Live More Frugally
This could require a whole life change, but patience is always important in accruing wealth, whether it’s through building your savings, or not having to go out and buy the latest thing. There are all sorts of ways that you can save when you’re spending money. Think about buying non brand and fresh goods when you’re in the supermarket. You might find they take longer to prepare, but the savings in the long term will be remarkable. You could also consider cycling to work, or if you’re young have one quiet weekend a month. That way you’ll see your savings grow and your health will probably improve as well!
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd. Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Services Authority Registered in England & Wales Company 5703224.
We normally do not charge a fee for mortgage advice, however a fee paying option is available. Our typical fee would be £500
