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MONEY: Take control of your debts, before they take control of you.

WRITE a list of all the money you owe - credit cards, loans, overdraft, family/ friends. Many people refuse to face the extent of their problems.

Draw up a list of monthly expenditure (excluding debt repayments) and make a monthly allowance for annual expenses such as car tax, Christmas and birthday presents and holidays to avoid paying for them out of one month's salary.

Subtract total monthly expenditure from monthly income to show how much you can afford each month to repay debts.

Apply for a personal loan and/or a 0%credit card balance transfer and start paying off the amount you owe.

It is also important to avoid spending on this new 0%account, which might incur interest charges of around 15%, and often more than 22% on cash advances.

Make sure you know exactly how much interest you are paying off on your debts and check regularly to ensure that you get a competitive rate.

Be realistic about the amount of debt you can pay off.

If you are repaying existing credit card debts, ensure you destroy the cards and close the accounts.

Leave them in your purse or wallet, and you might use them in a moment of weakness.


Avoid spending on new 0% accounts
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Copyright 2008 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Business
Publication:Daily Post (Liverpool, England)
Date:Jan 7, 2008
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