Debt Management

Debt management

• low interest rates have encouraged us to borrow more.
• borrowing to pay low rate mortgages has more than paid its way
• 30 million credit cards – with average of £1,600 outstanding on each
• mortgage lending - estimated at + £11,000 for each person
• consumer borrowing - estimated at + £3,000 for each adult

credit usage is at an all time high - we are used to living in debt -

The challenge is to manage these debts - before they manage us

How our debt is managed determines our credit score.
(a numerical assessment of credit history)

A good credit scores give you
• faster loans
• more credit
• lower credit rates
• special incentive offers

A bad credit score costs you money

- a consumer with bad credit is going to pay 20%- to 50% more in auto insurance premiums than a person who has good credit