Paying off debt 'part of good financial health'

By Sarah Engle, Thu 14 Jan 2010 - Published in Loans

Borrowers should be aware that repaying debt is just one aspect of good financial management, it has been suggested.

Debt solutions provider Think Money welcomed research from Friends Provident which showed that 31 per cent of 21 to 29-year-olds say that paying off debts is their main priority, ahead of saving for a home deposit or career break.

A spokesperson for Think Money agreed that paying back owed money is an important part of financial management, as it means they are less likely to encounter problems if a person is hit with unexpected costs or their income falls.

However, they pointed out that people should be taking other steps to improve their financial health.

"Putting money into savings where possible is also very important. An adequate savings fund provides good short-term protection against debt, as well as long-term security," the representative explained.

Earlier this week, price comparison service moneysupermarket.com said that one of the best ways to reduce credit card debt is to transfer balances to products with zero per cent interest deals.

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