Pay off credit card debt before saving, expert warns

Brits should prioritise paying off credit card and loan debts before thinking about savings, an expert has advised.

Justin Modray from Candid Money has advised people to focus on paying off existing credit card debt rather than trying to build their savings pot during the current economic climate.

This advice comes after a report from Resolution Foundation yesterday claimed that middle income families will be £4,000 worse off this year due to low wage rises, benefit cuts, inflation and higher taxes.

And last month a Consumer Confidence Survey revealed that over one-quarter of Brits have no spare cash, the highest figure since records began.

"As public spending cuts and higher taxes continue to take their toll, there’s little doubt some families will increasingly struggle to balance their finances," Mr Modray said.

"However, the high rates of interest charged by many credit cards will persist, so managing expensive debt should really be the financial priority for most households."

Source:  uswitch.com