Tips to Try to Avoid Debt

• Set a budget and stick to it. Its amazing how many people do not know what their household expenses are!
• Don't take out store cards - the interest rate is very high.
• Ask creditcard/loan companies for a more suitable payment date one that matches the date that your salary is paid.
• Try to pay more than the minimum amount on each card each month.
• Avoid late payments as they will incur an expensive charge and may damage your credit rating.
• Don't withdraw cash from your credit card it will incurr a higher rate of interest.
• Use a debit card for most purchases, that way you will not increase your credit cards spending.
• Pay your electric/gas bills by DD as they will normally offer a discount.
• Keep a simple diary of what you spend and where you spend it.
• Question every purchase - "do you really need it?"
• Try to pay off your credit card balances each month.
• Make a list of all of your debts and be honest with yourself!
• List your monthly income and expenditure.
• Compare your income with your monthly costs - again a budget is needed.
• Don't ignore letters/calls from creditors. Answer them and always write to them asking for help and keep a copy. Calls can be forgotten.
• Don't over promise when saying you will repay loans, credit cards or banks.
• Don't take out new cards when your old one reaches it's maximum.
• Change your spending habits, you have to change the way you live. Or it will get worse. (packed lunch, take a bus, don't call into coffee shop each day, write a shopping list).
• For a short term solution switch to a credit card with say 9 months at 0% interest but be careful after the 9 months the interest rate will rise.
• Prioritise your debts - mortgage, rent, electric, council tax.
• Look at getting a part time job if possible.

If you get into debt then speak to someone like Debtless, the bank, your partner – DO NOT BURY THE PROBLEM!

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