Pay it off now if you have debt problems

Consumers trying to balance debt problems with household spending have been told that now is the time to pay down debt.

According to Ed Bowsher, head of consumer finance at lovemoney.com, it would be better to pay down debt rather than put money in a savings account.

He says: "While interest rates are low, more of your repayments will go towards paying off your actual debt, rather than interest charges"

He goes on to say that when interest rates then inevitably rise, your outstanding debt will be smaller and the interest rate rise won't be as painful as it might have been.

Research from Equifax shows more than a third of consumers accessing their credit file have been making the most of low interest rates to pay off more of their debts.

Debt problems – payday loans

15/03/2011

Once again British consumers struggling against debt problems have been told to avoid resorting to t ...

Debt problems: Interest rate threat

14/03/2011

An increase in interest rates could plunge hundreds of thousands of households into debt problems. < ...

Debt problems: borrow to pay debts?

08/03/2011

People thinking about borrowing money in a bid to alleviate their debt problems have been told only ...

Debt problems – pay off debt

07/03/2011

People with debt problems currently considering the best ways to deal with them, might be interested ...