Top 10 Debt Tips
- If you find yourself in debt and are having difficulty managing it, notify your lenders. It's better to let them know of any problems in advance.
- If you don't want to borrow against your home, look for an unsecured loan.
- The longer you borrow for, the more in interest charges you will end up paying.
- Some lenders may offer a loan and then defer payment for the first three months. Remember that you will still be paying interest on the amount of money you will borrow.
- If you pay back a loan early, some lenders charge an early redemption fee. Find out before you borrow if there are any penalties if it is repaid early.
- When you want to borrow money shop around to find the best possible deal.
- Beware of lenders who knock on your door offering a small loan. You could easily be paying back huge sums of interest. Never sign for a loan without reading the small print.
- If you are in debt more than you can afford, cut up your credit cards to avoid any further temptation.
- If you are having debt problems, contact your local Citizens Advice Bureau who can offer help to reduce what you owe.
- Remember that repossession and bankruptcy are last resorts and you should do all you can to aviod them.
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