Watch those credit limits!

Watch those credit limits

Using between 25 and 50% of your available credit card or overdraft limit will reduce your credit score.

This is what lenders call the utilisation ratio. The higher the number, the less likely you are to be accepted for a loan.

You really don’t want to go above 50%!

Quick-hit savings ideas to get your started…

Whether you’re locked in a cycle of overspending or are on a tight budget (or both), it can be difficult to see where you can spare the cash to pay down debt.

However, there are lots of ways to reduce your monthly outgoings.

Take an afternoon once a year for a full money makeover to see where savings can be made.

Sites like uSwitch or Billmonitor can help you save on everything from energy bills and insurances to mobiles and broadband.

What’s more, they take the hard work out of switching providers too. If you use credit cards or high interest debt, it could be worth transfering balances to a 0% card. Take a look at the Money and Pensions Service advice for taking control of your debt.

No spending days are also a great way to reduce your outgoings. Your local authority website will have lots of free days out that you can take advantage of, especially in the summer months.

Money makeovers shouldn’t be a punishment…

It’s about shaving off wasted pounds, not depriving yourself of the little things in life that make you smile. So your monthly makeup box or Netflix subscription doesn’t need to take the hit, unless you want really want it to.

About Adrian Davies

With a background in money advice, Adrian's been campaigning for fairer finance for 25 years.

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