How to manage debt: Part 1
These days it seems it’s the norm to be constantly in debt, but there are some basic principles that you can use to help control your debt rather than letting it control you. The number one way of getting yourself into financial strife is by overspending on your credit card. To many people spend on there credit cards thinking they will pay it off with their wages, but when pay day comes they forget to clear the balance. After while before you know it your hit with big monthly interest charges.
If you do insist on using your credit card then be sure to get one with a low interest rate, so many people are losing £100’s by using credit cards with high interest rates. As of August 2005 you can get credit cards with interest rates as low as 5% yet many people carry on using cards with nearly 20% interest. Typically many people get stung by store cards which over many very nice incentives but usually these have nasty interest rates, so don’t get suckered in.