Debt

By now you will have received your credit card bill for what you spent at Christmas and over the holiday period. If there was a big figure at the end, you’re not alone.

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.

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.

There is a lot to think about when you buy a car - fuel efficiency, safety, reliability and, of course, the cost. Buying a car can be a big expense.

Hire purchase and credit sale agreements can seem like a great way to pay when you haven't got the money right now. Particularly if the retailer offers an interest free period.

Credit cards are an easy way to pay for things but they can also be very expensive if you don't pay off the balance in full every month.

So you've decided you need to borrow to get what you want?

Great, but get it sorted properly. Work out how to borrow so that it costs you as little as possible.

Going into debt is a big decision. When you have debt, your life options start to become far more limited.

Should you pay off your debt faster or start saving now?