Easy money is hard to find...

 

Amassing huge debts is easy to do. However, if you have taken out a loan and spent more than you can afford there are ways you can help yourself. Adverts, letters, phone calls telling you you are pre-approved for a loan or a higher limit on your credit card are all ploys to get you to borrow more. Although it might seem attractive at the time, there is no such thing as easy money.


Companies would not be after you if they didn’t think they could make money from you. One credit card is good as long as it has an adequate credit limit. Be realistic and spend only what you can afford on it and try to use cash where possible.

Many card issuers offer an initial interest rate sometimes as low as zero per cent. But find out what happens after the introductory phase ends. Set up a standing instruction to settle the full amount on your card from your bank balance each month.

Switching banks that will take on existing debt and charge a lower rate of interest are also a good idea, but always read the fine print and be aware there may be a charge on the transfer. 

Generally interest on a loan will be lower than the two per cent you may be paying per credit card, but always borrow what you can afford and if you get into trouble speak to someone about it.
 
Sandi Saksena is a member of the Million Dollar Round Table.
 
 
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