Avoiding Excessive Debt
A simple rule to follow in order to avoid getting into debt, is to make sure that you do not borrow more money than you can afford to repay; remember that although a lender may be willing to lend you money, it does not necessarily mean it is a good idea for you to borrow it!
Anyone who lends you money will expect every penny to be repaid, as well as interest charges which act as compensation for their lending to you. It is important that you establish when, for example the beginning or end of each month, and how regularly the payments have to be made. Check that you have enough income to make repayments, as well as cover your current outgoings.
If you opt to make repayments via direct debit make sure that the loan repayment does not come out of your account before your regular income is paid in, to avoid costly overdraft charges. If you budget effectively and keep track of your finances you should not need to worry about falling into unnecessary debt. Nevertheless, if you are worried about any issue relating to debt, further advice is available from your local Citizens Advice Bureau or the National Debtline.
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