Nov 20 2007
Thinking of debt instead of Christmas?
1.7 million people had debt problems in 2006/07 according to charity Citizens Advice, this shows that not only the US has a credit problem
It’s scary how much debt people on average are getting themselves into and of course, debt levels vary widely across the UK. So here are a few easy tests to see how far down the debt path you really are:
1. Wages spent before the end of the month?
Learning not to spend more than you earn each month can take time especially if you have racked up several credit cards over the years. The first lesson is don’t spend more than what you earn. Don’t be tempted to always buy now, sometimes the best things are worth waiting (saving) for!
2. Using your Credit Card for Christmas?
So maybe this year is a good year to set a proper budget for each person you have to buy for. Don’t be tempted to go shopping without a list of people you have to buy for. There are also some great deals on 0% transfers so make sure you are taking advantage of them.
3. Paying your bills using credit cards
It’s quiet worrying how many people have paid their mortgage using a credit card. Your mortgage should be the first thing you pay each month, not the last. Its an extremely expensive way to pay for your home and also in many cases can be a slippery slope that’s difficult to get out of.
4. Repay more than the minimum
Paying the minimum repayment on your credit card could mean you pay your mortgage of before your credit card. It is a always a good idea to try and clear off your credit card each month.
5. No savings?
Live today, forget about tomorrow is not a good approach if you want to retire. One thing is for sure the cost of living will continue to rise. The sooner you start saving the bigger the benefit especially with compound and interest.
