As consumers we each have unlimited wants and desire things that we don’t really need. It is a good idea to ask yourself if you really need what you are buying before parting with any cash. You may look at your car each day and feel that it would be nice to have a new one, but do you really need one? If it isn’t breaking down or covered in rust the chances are is that it is on your ‘wish list’ rather than a necessity. Most people haven’t got ten grand sitting in their bank account which means that they will need a loan. If you have bad credit you could easily end up paying 27% APR. If you are paying out £350 per month for a car you are buying today you have to remember that you will forego that money tomorrow.

Do you have credit cards? Many of these will be accruing interest at very high rates. If you are only paying the minimum amount each month you will find that your balance will not be paid off for 30 years. Why not take advantage of an interest-free credit card and transfer the balance across? If you keep doing this you will save yourself hundreds, if not thousands, of pounds. If you don’t have good credit, why not pay the debt off with your savings? If you are struggling to keep control of your finances the simple answer is to write to the credit card provider to close down the account or reduce the credit limit.