It’s sometimes easy to borrow money – and easy to get into debt. Even if credit is easy to obtain, it is not free. You have to pay the amount you borrowed, plus any interest incurred. You’re in debt.
If you have a credit card, you need to pay the total balance off before any interest-free period expires. If you only make the minimum repayment every month, you will be meeting your responsibilities, but the debt will keep growing.
A good way to tackle debt before it becomes unmanageable is to start with the one that attracts the lowest interest rate, even if it is for a smaller amount. That way you won’t have to worry about interest payments that can become bigger than the amount you owed in the first place – and you can enjoy a sense of achievement from clearing a debt completely.
If you cannot meet your obligations, do not ignore the problem. Speak with your financial services provider first, seek assistance from a financial counsellor, or if your debt is passed on to ACM Group, get in touch with us. Read more about getting help with debt and different kinds of credit, such as unsecured loans, secured loans, payday loans and debt consolidation loans here.
Disclaimer: ACM Group believes that informed consumers are the best consumers. The information contained on this website is general advice aimed at improving financial literacy and breaking the cycle of debt. It is not intended to imply any recommendation or opinion about a financial product.