Women tend to owe less than men but worry about their debts more. How can you repay yours?
The recession has made us borrow less and pay off more of the money we owe, but the figures around debt are still pretty frightening. According to the debt charity Credit Action, each household that owes money owes an average of £21,200 on credit cards, overdrafts and personal loans. Although research shows that women owe less than men, we tend to owe money on credit and store cards - which can charge high rates of interest - which means we end up paying more. We also tend to worry about our debts more than men do.
If you owe money and you’re trying to pay it off, make sure you get the maximum out of every pound you pay
There are two kinds of debt – priority debt that you have to pay off first, because if you don’t the consequences could be very serious (such as mortgage, council tax and TV licence) and other debt, such as credit card and personal loans, where the lender has limited powers if you’re unable to pay. If you're struggling with priority debts, you should get help from a debt advice charity. But if you owe money on store cards, credit cards or personal loans and you can afford the payments, there are two debt repayment methods that can help you clear your debts fast.
Tips to get started on the path to paying off your debts
When you’re in debt, the hardest part is often working out where to start paying them off.
If you’re worried about how much you owe, but have been ignoring the problem for a while, you’re not alone. Debt advice charities say that people who come to see them have often been struggling to work out a way to deal with their debts for an average of 18 months. But while it might seem easier to ignore letters from the bank and final demands, it won’t solve the problem. Facing up to your debts can be hard, but it’s the first step towards taking control of your money.
