Digital financial advice service OpenMoney has shared some top tips on paying off debt.
And, one word of advice has seen them suggest that getting into a particular spending habit could help some people to keep track of their outgoings.
While it can be tempting to overspend when money is in one’s pocket, OpenMoney instead advise always trying to plan purchases, and compare prices online in order to make sure one gets the best deal – particularly when it comes to big ticket items such as appliances or furniture.
What’s more, opting for cash rather than card when it comes to paying may be a helpful money-saving hack, they suggested.
“Paying for everything on contactless has made those impulsive buys easier,” OpenMoney said.
“We were much more likely to think twice when we paid for items with cash because we were able to keep track of our spending.
“To stay in control try drawing out a set amount of money at the start of each week and see whether you can survive on that.”
Another top tip is to not borrow money if it means buying something that doesn’t last as long as it takes to pay for.
“So, borrowing to help build an extension or buy a car could be a good idea, but try not to take on debt to pay this month’s gas bill, which should usually be covered by your income,” OpenMoney said.
“Avoid paying monthly credit card bills late if you do borrow money.
“Set a reminder each month to sort all your bills at once, ideally just after you’ve received your monthly salary.
“The fees if you are late to make a payment are a gold mine for credit card companies and banks, so don’t slip up and forget.”
OpenMoney also suggested paying back more than the minimum required amount, where possible.
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