You might get a bit of a shock if you find that you are slipping into debt, and you might need a bit of thought and planning to get out of it. But don’t just ignore it as you might find that it all too much to cope with!
Rae Oldham, who is a baliff at Stafford Combined Court, hosts regular drop-in sessions at the Stafford Connexions Centre on Hunters Row. Rae has been helping young people with money worries since 2001 when she set up TIDE – Teenagers in Debt.
Here are Rae’s five top tips to keep out of debt:
1. Do your sums
Write down your income before deciding whether or not to take on any credit. Work out what your outgoings are to see what's left over and if you can comfortably afford it. Don't forget to take into account going out and social activities such as birthday presents, Christmas presents and holidays. Work on an annual budget, divide it by 12 to give you an average monthly account.
2. Check the APR
If you are going to take out credit check the APR (Annual Percentage Rate). Work out what the annual interest will be.
3. Don't be tempted into becoming a ‘credit tart’
Short term APR rates of 0% are only short term and unless you can pay off the amount borrowed at the end of the promotion period you’ll probably find the interest rate is usually a great deal higher when the promotion ends.
4. Always leave some money left over for emergencies.
When working out your budget don’t work to a nil balance, you need pocket money at the end of each month.
5. If you can't afford it - don't have it!
