Managing your debt, building up a cash reserve and income protection

January 21, 2019

In the second episode of the CCPC sponsored TV show How to be Good with Money we saw Michele face the burden of debt, both financially and emotionally.

When it comes to reducing your debt, it’s important to not get caught in a borrowing spiral. Instead, focus on paying off debt as soon as you can and avoid being tempted to borrow in the future. Furthermore, it’s important to break the habit of living in your overdraft. An overdraft is not the cheapest way to borrow money, and most often, the limit ends up becoming your spending target.

If you’d like to cut back on spending, try our spending calculator to work out what you are spending every month, or every year, on items that you may not really think about or budget for. This could go a long way to helping you save money so you can build up an emergency fund in case disaster strikes.

Income is one of your biggest assets, so it’s crucial to look at ways of protecting it. Income protection insurance pays out a regular cash payment that replaces part of your lost income if you can’t work due to a medium to long-term illness or disability. You can take out income protection by joining a group scheme at your workplace, or by taking out an individual policy.

If you missed it, you can catch up on episode 2 and find out How to be Good with Money.

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