Nothing New

I was interested this week in Monday’s Daily Telegraph (31/8/09) to read one of their feature articles in the ‘Your Money’ section about how to get on top of debt. I felt I was already on top of my debt and didn’t feel like I was drowning under the mortgage and car loan. I thought there might be something new being said that could be applied to my situation. Instead it was the same advice people have been giving for years, it’s just that no one has been listening. Now they are forced to listen as they deal with financial hardship.

The advice was:

1. Get rid of bad debt. Well I don’t have any so I have no worries. They consider bad debt to be personal loans that incur high interest.
2. Get rid of other debt. Believe me I’m all over that. Lump sums come off the mortgage quite regularly.
3. Don’t get into bad debt. Sounds pretty basic doesn’t it? Yet to many people are sucked into interest free periods by the big retailers. Then if they can’t pay the amount in the prescribed time then they are given a rude shock when the have to pay a ridiculous amount of interest.
4. Use debits cards instead of credit cards. Have seen more ads for these cards now. Perhaps banks are getting slightly more responsible. Debit means you’re spending your own money and therefore have to show a bit more restraint when it comes time for purchases

Simple advice. Get a budget and spend within your means and financial hardship will be given the boot.