Pretty padlocksThe recent Tory budget promised to make us all better off; but not everyone is feeling so flush. If your finances are not in the greatest shape, you may be interested in our Top Tips on financial budgeting.

In this first of a two-part series, Logic director Harj Heer takes a look at ensuring your finances are in good shape by first dealing with any debt.


1. Learn your credit score
It doesn’t cost much to get your credit report but it can tell you a lot about how lenders perceive you. This will help when you shop around.

2. Pay down debt
This is always going to be the biggest drag on your income and should be the thing you focus most of your attention on. For example, did you know that paying only the minimum payment on a credit card (usually 1% or £5 whichever is the higher) could mean continuing to pay it for 25-30 years?

If you have several cards and can only afford to pay the minimum on some, focus on the one with the highest interest rate debt; once that is paid off, use the money to tackle the second highest and so on.

3Be debt savvy
If you do have debts then shop around and make sure you are on the cheapest rates possible. This is so you pay as little interest as possible and ultimately will mean being debt-free sooner.

4Start saving – even a little
A lot of people don’t have an emergency fund for when things go wrong which is why many have so much debt. Once you’ve paid off your debts then you can start putting a little aside. We typically recommend you have at least 3-6 months’ worth of outgoings saved as cash. Once you’ve done this, it’s time to start looking longer-term at more appropriate savings and investments.

In the next part of this series, Harj will share his Top Tips for setting a financial budget. Check back soon on our website.