Use savings to beat your debt worries

One trillion, that is what consumer debt in the U.K stands at, meaning that many of the U.K debtors may have bitten off more than they can chew.

Especially with the bank of England’s decision to raise the interest rates and will be expected to do again next month as well.

Maybe it is about time that savings were used to make over payments to mortgages, to make allowances if the interest rates were to take another hike.

Store cards are another form of debt that should be, cleared as quickly as possible, as the interest rates charged by these cards, are usually way and above the normal interest rates of a credit card. Paying them off in full or balance transferring them to a credit card.

If you have large debts on credit and store cards, then a personal loan may just take the amount of interest you are paying down, meaning you are paying less and you will know when the debt will be cleared, where s with the plastic you may find that the minimum payments will be used to pay your debts, leading to the debt accruing more interest every month and the debt never being paid off. If you do go down this route, once the loan has paid off the credit card companies, it would be a good idea to put your scissors through them, to stop them leading you in to temptation and putting you back to where you are trying to get out from.