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Ten tips for managing debt
It’s easy to let debt build up. But paying it off can be hard. The following tips can help you manage your debt.
1. Choose the type of credit that best suits your needs.
2. Never treat credit like cash in your pocket.
3. Shop around for the best credit deal. Don’t just compare interest rates – look at fees and charges too.
4. Don’t take on more debt than you can comfortably repay.
5. Shop as carefully with credit as you do with cash – set a spending limit and stick to it.
6. Don’t build up debt now on the basis of income you expect to earn in the future.
7. Every dollar you pay in interest is money you could be saving. Reduce your interest bill by repaying more than the minimum.
8. Make paying off debt a priority – think about setting up a direct debit that allows regular repayments to be drawn from your account to pay off the debt.
9. Don’t be flattered into taking on more debt. Make sure that you can meet your existing repayments before accepting a higher credit limit.
10. Pay with cash whenever you can.