Ever wondered whether to save or to pay
off your debts? Well, if your debt repayments cost more
than what you’re earning back in savings, you’re better clearing the most
expensive debts first. Your credit cards, store cards and
overdraft are among the debts you should try
paying off month by month. If you can do this and keep up with your
rent or mortgage payments, it’s worth putting away a bit too. It’s
easy to make regular saving a habit. Start by setting yourself a goal. How much do
you want to save? How long will it take you to reach your
target? Setting up a standing order or Direct
Debit will mean you won’t even need to remember to save. And it won’t take long to see the
difference it makes. Set aside money for emergencies whether
three months worth of income or a credit card for a genuine emergency.
Just make sure you only use it in a crisis and not run up debt on unnecessary
spending. For more advice on paying off your debts and setting a savings goal check out the other videos on our website.