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Martin Lewis: Cutting your debt

Personal Finance expert Martin Lewis talked about how to reduce your debt by cutting your interest rates.

Personal Finance expert Martin Lewis talked about how to reduce your debt by cutting your interest rates.

January is a great time to look at your finances - Martin says everyone is looking at their finances at the start of the year and there’s a “collective zeal to sort out our financial problems.”

Debt isn’t just a money issue - Debt can seriously affect your mental health, so managing your own finances can really help. Martin says: “For many people it will help you sleep better at night.”

One in two adults with debts has a mental health problem. One in four people with a mental health problem is also in debt.*

Start with cutting your interest - balance transfers are a way to reduce your interest rates. “The lower the interest you're charged, the more of your repayments go towards clearing the ACTUAL debt.” said Martin. Before you apply for a balance transfer, Martin recommends trying a balance transfer eligibility calculator to see which you’ll be accepted on, as this won’t affect your credit score.

*Source: Royal College of Psychiatrists - July 2017

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