The figures for personal debt in the UK are frightening standing at a colossal 1.3 trillion pounds.
For most people their biggest debt is their mortgage so it is vital to keep the cost of this to a minimum. Many people will be coming to the end of their fixed rate mortgage deals and will see payments increase dramatically. With fixed rate deals two years ago from as low as 4.29% going onto a standard variable rate today typically 7.5% will mean a large increase in monthly payments. This could cost a person with a £100,000 mortgage an extra £200 per month.
It is therefore vital that you seek a new mortgage deal to reduce your payments.
One of the other main areas people can make savings on is card debt (Credit Cards) which is estimated to be around the 50 billion mark. You need to take charge of your credit card debt to make sure you are not paying high interest rate charges.
There are a number of card providers that offer long-term 0% balance transfers, however most now charge a transfer fee of around 2 to 3%. If you do decide to use one of these providers it is vital that you do not spend on the card as you will usually pay interest on purchases.
The other main type of cards are store cards which often have the highest interest rates and the best advise here is simply do not to use them.
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