Pay Off Debt with a Prepaid Card
Debt ridden Brits are being urged to pay off as much of their debts as possible before interest rates rise making bills larger and more unmanageable.
Try using a Prepaid Card to help you budget your monthly income so you can set aside a lump sum to pay off any debts you have hanging over you.
The Bank of England recently warned more than seven million homeowners currently taking advantage of low interest rate deals to make preparations before the rates rise.
A survey by Equifax following this showed more than a third of consumers have been making the most of low interest rates to pay off more of their debts than they would have ordinarily been able to do.
Although 31.4 percent admitted they still have the same level of debt as they did a year ago, suggesting the increasing cost of living could cause problems for them in the New Year.
“For some of those individuals who are currently on variable interest rates there is likely to be some effort to get a new fixed rate deal ahead of any base rate increases,” warned Neil Munroe, Equifax external affairs director.
“If the base rate increases next year, they could face larger monthly mortgage payments which could be hard to manage alongside other increases in living costs.”
Budget with a Prepaid Card
A prepaid credit card could help you manage your money better so you have more left over each month to pay off existing debts.
If you pay the majority of your debts off now you will benefit in the future as you will have less money to repay at a higher price.
A prepaid credit card prevents the user from spending over their budget as it does not have an overdraft facility to dip into.