Shop around to find 0 per cent debt relief

With interest rate rises likely, now is the time to think about all aspects of your finances, not just the mortgage. There are easy ways to reduce the interest you are paying on credit cards, store cards and personal loans, which in turn will help you to shorten the time it takes to pay off the debts.

According to website Moneysupermarket.com there are around 60 credit cards offering 0 per cent for up to nine months on balance transfers and a minority on purchases as well. It is possible to switch not only your credit card balances but also store cards and overdraft balances to a 0 per cent credit card and start saving instantly. Once the offer period expires, switch again to another of the many low-cost cards on offer.

If you cannot move all your debts to a 0 per cent, prioritise paying off those with the highest interest rates first. For example, store cards can charge up to 30 per cent, whereas many credit cards charge between 13-18 per cent.

Recognise your debt personality. If you know you will not start paying off any capital if you switch your debts to a 0 per cent credit card, it may be best to go for the discipline provided by the repayment schedule of a personal loan.

If you need to borrow or consolidate your debts, remember to shop around for money as you would for any other commodity. The web is a convenient way to start - on moneysupermarket.com you can compare personal loans, credit cards and mortgages, for example. Also, don't forget, if you do start to struggle, speak to your creditors sooner rather than later. It will be easier for them to rework your repayment schedule before you default on repayments.