Most expensive debt should be paid first

Fri, 27 Jan 2012

People struggling financially should look to pay off their most expensive debts first.

This is the suggestion of Phil Perry, director at Ark Financial Planning, who recommended individuals look through their credit statements and gain a better idea of incomings and outgoings.

The industry figure noted people should then try to get rid of the things costing them the most, observing those having difficulty as a result of overspending on credit cards can look to transfer sums between their different plastic products.

He stated: "There are still companies out there offering nought per cent finance on credit cards to allow you to switch from one company to another. That is always a great way."

However, those encountering problems as a result of being tied into loan payments should try and speak to their bank, rather than approaching a loan shark.

By doing so, individuals could try and find a way to reduce payments or change their financial practices.

Mr Perry's comments come after recent research from Prudential revealed a high number of Britons are likely to retire this year while still struggling with debt .
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