Elastic plastic

By THIS IS MONEY
Updated:

 

I have a very high credit card bill. I have stopped using the card and I can only afford to pay off about £120 a month. The trouble is the interest rate along with the insurance charges mean I only end up paying off tiny amounts of the actual debt. Is there a way of paying the same amount but making a bigger dent in what I owe? AI, London.

Linda Whitney says: Change to another credit card where the interest rate is lower, and keep paying the samount amount off each month. Thatway you eat into your debt. Alternatively, get a loan at a lower rate of interest to pay off your credit card bill. Banks are usually happy to offer this.

Be careful - don't take on any loans that are secured on your home because if you stop paying you could lose the roof over your head. Only borrow what you need to pay off - if you increase your borrowing even at a lower rate of interest you could end up paying more each month.

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