Sunday, 10 May 2020
Thursday, 30 April 2020
Tuesday, 11 February 2020
Your Debt Card - rather than your credit card!
Your Debt Card!
They should probably rename your not so trusted credit card a debt card!
Using it in a reckless manner and, if you only pay off the bare minimum each month will no doubt keep you in debt and possibly poverty.
As an example, let’s take a typical credit card with an APR of around 22%.
Let’s imagine you receive your monthly statement, showing you are £1,600 in debt.
With interest charged at 22%, the minimum monthly payment will be around £40.
Quite staggeringly, of that £40, an incredible £30, or 75% of your payment will go towards interest!
Therefore, in effect, only £10 will go towards reducing your debt, leaving you still in arrears of £1,590.
In this sort of frightening situation, the best thing you can do is to try and pay off this crazy debt as soon as possible.
In future, if you fancy something, then make sure you can pay for it with cash before commiting yourself to this purchase.
Ask yourself, “is this purchase really necessary? and is it money well spent?”
Aled Evans
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Saturday, 11 January 2020
Putting Your Financial House in Order!
Quite often a new year brings a change of heart and a determination to put your financial house in order. One useful exercise is to analyze your bank statement, direct debit instructions or standing orders, looking for ways to eliminate unnecessary outgoings.
In my case, top of the list was my HSBC Invest-direct account facility for trading in shares. The service charge on this account amounts to £10.50 a quarter. Since I have decided not to dip my toe into the stock market during these volatile times in an economic sense, it makes sense to close the account.
This simple act, implemented in about a quarter of an hour has saved me £42 over the course of the coming year!
Aled Evans
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