- Tuesday, 9 June 2009Consumers should eliminate debt as a priority if they wish to "beat the recession", advises This is Money.
The financial guidance website lists debt elimination as one of its six main ways to cope during an economic downturn.
"Make sure that you are paying the lowest rate possible on any borrowing you have," readers are told.
Other steps to eliminate debt include paying off a lump sum to help reduce outstanding credit card balances.
However, This is Money also suggests lowering monthly loan repayments to reduce outgoings - which could make debt elimination take longer.
An IVA could be an alternative way to reduce monthly outgoings while potentially clearing debt faster.
By setting up an IVA, people whose debt has become unmanageable can promise to repay as much as they can afford, with the remainder written off by their creditors.
The
IVA process typically takes around five years to reach completion.
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