Managing debt

It's good to be able to borrow money. It can help you acquire assets - like a house, a business or an education. But debt can also be a trap.

The interest you pay on debt sucks your money away from you and stops you building your net worth.

One of the easiest ways to get your money sorted, is to get your debt sorted. Remember, debt can be good if you buy the right thing and control it. Don't let debt control you. This section contains information on how to manage your debt.

• Pay off debt or save?
  Should you pay off your debt faster or start saving now?
• Think before you go into debt.
  Think about whether borrowing is really the best way to get what you want. Work out how much that loan will really cost you.
• Get out of debt fast.
  Work out how to get out of debt fast.
• Repayment Options.
  Work out how different repayment levels affect the total amount you repay on a loan and the time it takes to repay it.
• What are your borrowing options?
  Find out how to borrow so it costs you as little as possible.
• Credit cards.
  Get the right card and use it wisely.
• Hire purchase.
  What you should know before you sign up to a hire purchase (credit sales) agreement.
• Car loans.
  Check out all your options before you hit the car yards.

You can order or download a printed summary of this section in our Sorted booklet 'Managing debt - It's easy to get into, harder to get out'.