pennies for luck



Don’t just assume that your current car and home insurances are the best deals you can get. It’s easy to compare on


Credit Cards:

The most expensive way to buy anything is on credit – if you don’t already have a credit card – don’t get one! It only makes things cost more unless you pay off the balance each month. If you already have outstanding balances on credit cards which you have had for a while it is a very good idea to transfer them to cards with low interest rates so that more of your monthly repayment actually goes to repaying the debt. If you are paying 20% or more APR you are really being ripped off.

The credit crunch has lessened the number of good offers out there somewhat but some companies still offer 0% interest on balance transfers and/or purchases for a certain time when you switch. Applying online is quite painless too.

The quickest way to get rid of credit card debt is to first arrange the lowest interest deals possible (remember it is worth asking your current lenders if they would give you a lower rate – tell them you’re thinking of changing cards and they might be persuaded!), then pay the minimum monthly repayment on all but the most expensive card – pay as much extra into that as you can manage until it is gone – then move on to the next most expensive. It takes determination and staying power to do this as it may take years but it is possible – the more frugally you live the quicker you can do it and YOU CAN DO IT!

6 Replies to “finance”

  1. I use a credit card for most purchases – pay it off in full each month so never pay interest, but get quarterly M&S vouchers which I use or sell.

  2. I use a credit card all the time but clear it each month – the points I earn (mine is a tesco card) I use to pay for my Christmas food shop. I normally earn about £200 a year this way and pay not a penny interest!

  3. my credit cards have undoubtably cost me an awful lot over the years. Working for a charity I earn a low income and I was using the cards to make up the shortfall. Not sensible at all. I have cut them up which certainly limits the ability to add to the balances and makes shortfalls a curent problem to be dealt with now rather than ‘I’ll sort it out later’. I hope I never have one ever again, they did not work in my favour at all

  4. I have a santander 123 card and from January the fee is going up to £3 a month and their debit card to £5 a month so the credit card is going, I only use it for shopping and at £24 a year it was worth it but £36 a year or £8 a month including the debit card is a joke that just isn’t funny, I would be using the card just to pay the fee

  5. I am in the process of ditching all my credit cards in the way described in the article. I’m on the last one now. It’s taken a couple of years and a bit of good fortune along the way but I’m within sight of the end now. I won’t be getting another card ever! I used to pay off the full balance but when things get tight, the temptation to use it more is very strong and that’s how people (me too) get into difficulties.

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