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Is it time to pay down your debts?

As consumer debt in the UK still remains at relatively high levels many people appear willing to pay down their debts in the short to medium term to the detriment of their lifestyle. While there are obvious attractions in this move, with a significant reduction in interest payments likely, there is a need to be sensible and take a longer term approach rather than a short-term knee-jerk reaction.

If you pay off a large part of your debts by potentially delaying other payments and costs associated with your lifestyle there is a chance you could make the situation worse in the short term. Once you have paid off part of your debt it is highly unlikely that any financial institution, in the current environment, would agree to reimburse you in the event of financial trouble in the future.

The natural reaction to large debt piles is to try and pay off as much as possible in a short space of time. However, sometimes it is better to take a long-term approach, maybe consolidate or refinance your loans, ensuring you have enough money to live off and gradually reduce your debts. Taking debt advice is vital for those facing potential trouble or even looking to strengthen their position by repaying part of their debts.

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