I THINK it’s safe to say that nobody actively seeks to get into debt, but it’s a fact that about half of us have an existing debt and, as we continue to face the challenges that coronavirus has thrown at us, we need to be even more debt aware than we ever have been.

Spending is a habit and retail therapy, in the long run, doesn’t help, but as we soldier on during lockdown it’s so easy to browse online retailers and snap up their alleged bargains.

It’s good news indeed that many banks, building societies and credit cards companies have announced repayment holidays as it takes the pressure off us in the short term. However, it’s vital that we take steps to prevent a bad situation becoming worse and here’s how.

1. A repayment holiday must be formally agreed with the lender, simply cancelling a Direct Debit will attract penalty charges for non-payment.

2. Paying at least some of regular payment will reduce the overall interest.

3. Don’t add anything new to outstanding debt.

4. As we spend less on socialising we may find a little more money than month. Save it!

5. Switch to a balance transfer credit card but weigh up the pros and cons of the zero interest period versus the transfer fee to get the deal.

6. If funds are available, tackle a small debt and clear it as soon as possible.

More information about effective debt management is available at:

UK Government Advice – gov.uk/options-for-paying-off-your-debts

Stepchange – stepchange.org/how-we-help/debt-advice.aspx

Citizens Advice – citizensadvice.org.uk/debt-and-money/

National Debtline – nationaldebtline.org

Age UK – ageuk.org.uk/information-advice/money-legal/debt-savings/debt-advice/