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Fixing your finances part 4. What to pay off first?
We’re finally there! You've made a budget, investigated cutbacks, and looked at earning a little extra. Today we’re going to talk about the best way to make use of it.
Hi everyone! We have reached the last part of this series. You’ve done all the hard work making a budget and keeping a spending diary. You’ve been honest with yourself about what you do and don’t need. You’ve investigated other ways you can bring in a little extra cash. That’s a lot of work so you should be proud of all the effort you’ve put in up to this point.
You now know how much you have per month to pay down your debts. The last step is choosing the most effective way to do it. If you only have one credit card it’s pretty easy, pay it! If you have several debts across credit cards, store cards, catalogues and loans though it can be more difficult. Fear not though, I’m here to help.
Another list
The first thing to do is make a list of all your debts. Note down what they are (Lloyds credit card, John Lewis store card, Halifax loan etc). Record their current balance, the minimum payment, and what the interest rate is. Yes I know, another list! I love lists can you tell? They are one of the best…
