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Get out of debt fast

This one isn't brain surgery - the longer you have debt, the more interest you pay. It pays to get out of debt as fast as you can.

Compound interest applies to borrowing too

Just as you get compound interest on savings, you PAY compound interest on the money you borrow.

Get rid of your high-interest debt first (such as credit cards and hire purchase). Next, see if you can increase your loan repayments to clear your other debt quicker. Be sure to check with your lender that paying off your debt faster won't result in penalty payments.

The faster you can get rid of your debt, the sooner you can start saving.

The Get out of debt calculator will help you to work out how to get rid of your debt faster.

If you’ve sorted out your debt management and you’d like to find out ways of saving on your mortgage repayments, Consumer Online have some useful tips that could help.

Glossary: debt
Debt is what you owe - it comes in many forms, including mortgages, personal loans, credit card balances, hire purchase agreements, loans from family.
Glossary: interest
Money paid in return for the use of money. If the bank is using your money (in a savings account) they pay you interest. If you are using the bank's money (via a loan), you pay the bank money.
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