Irwin Consulting Planning in Singapore and Tokyo, Japan on How to clear all your debts in 2018

<strong>Irw<strong>in</strong></strong> <strong>Consult<strong>in</strong>g</strong> <strong>Plann<strong>in</strong>g</strong> <strong>in</strong> S<strong>in</strong>gapore <strong>and</strong> <strong>Tokyo</strong>, <strong>Japan</strong> on How to clear
all your debts <strong>in</strong> 2018
Millions of Brits overspend at Christmas, leav<strong>in</strong>g them <strong>in</strong> f<strong>in</strong>ancial difficulty come the New Year.
In fact, a whopp<strong>in</strong>g 7.9 million people <strong>in</strong> the UK will struggle to pay their bills this month after an excessive festive period, accord<strong>in</strong>g to
the debt charity Money Advice Trust (MAT).
Severe debt isn’t just a f<strong>in</strong>ancial problem either. The stress of ow<strong>in</strong>g money can lead to mental health issues <strong>and</strong> relationship
breakdowns, accord<strong>in</strong>g to charity M<strong>in</strong>d.
If your new year’s resolution is to be better with money <strong>in</strong> 2018, Money Sav<strong>in</strong>g Expert Mart<strong>in</strong> Lewis can help you alleviate your debt.
The 45-year-old has already revealed the best bank accounts for <strong>in</strong>terest rates on sav<strong>in</strong>gs, but <strong>in</strong> his most recent Money Tips newsletter
he revealed some key tips for cutt<strong>in</strong>g the cost of debt this year.
Here are five simple steps to help you pay off your debt quicker:
1. Stop borrow<strong>in</strong>g money
It can be easy to get <strong>in</strong>to a downward spiral with debt, but you need to stop borrow<strong>in</strong>g money.
Only pay back what you can afford each month or you’ll make the situation worse <strong>in</strong> the long-run.
2. Identify which debts need pay<strong>in</strong>g off first
Start pay<strong>in</strong>g off the debts with the highest <strong>in</strong>terest rates first.
"Use all spare cash to clear it <strong>and</strong> just pay the m<strong>in</strong>imum on everyth<strong>in</strong>g else. Once it's clear, focus on the next costliest,” said Mart<strong>in</strong>.
3. Cut credit card costs
If you’re currently pay<strong>in</strong>g <strong>in</strong>terest on your credit card look for a better option. You will have to pay a fee to transfer the debt, but it will
be cheaper than pay<strong>in</strong>g the <strong>in</strong>terest <strong>in</strong> the long-run.
Mart<strong>in</strong> recommends swapp<strong>in</strong>g to either a Barclaycard or MBNA card to get the longest 0% <strong>in</strong>terest period.
Barclaycard
Offers 38 months with 0% <strong>in</strong>terest <strong>and</strong> they offer a low fee to shift your debt.
MBNA
They also offer a 38-month 0% periods, but a slightly higher fee to transfer your debt.
Cut overdraft costs to 0% (<strong>and</strong> make some extra cash do<strong>in</strong>g it)

Mart<strong>in</strong> reveals two key options when it comes to cutt<strong>in</strong>g your overdraft payments:
Switch to a 0% overdraft
First Direct offer a 0% overdraft of up to £250 <strong>and</strong> they also give you £125 to switch to the account.
Nationwide Flexdirect 0% overdraft is much bigger, but depends on your credit score. It only lasts a year, so you’d need to have it payed
off by then or consider swapp<strong>in</strong>g aga<strong>in</strong>.
If you've a friend who already has a nationwide account, you both get £100 if you switch, via their recommend a friend scheme.
Use a 0% money transfer card
A few specialist cards also allow money transfers.
“This is where the card pays cash directly <strong>in</strong>to your bank account, thus clear<strong>in</strong>g your overdraft, so you owe it <strong>in</strong>stead, at up to 37 months
0% - very useful for larger overdrafts,” Mart<strong>in</strong> expla<strong>in</strong>s.
4. Cut big personal loans to 2.9%
If you’re clever about it, you can get a new cheaper loan to pay your old, more expensive one off.
On his website, Mart<strong>in</strong> offers up this useful four-step process to f<strong>in</strong>d out if you could save money on your exist<strong>in</strong>g loan:
STEP 1: Ask your current lender for a settlement figure. This is how much it'll cost to repay your loan <strong>in</strong> full now <strong>in</strong>clud<strong>in</strong>g early
repayment costs (i.e., the amount you'd need a new loan for to pay off your old one).
STEP 2: Work out how much it'll cost you to stay where you are. Check what your monthly repayments are <strong>and</strong> how many you have left
(ask the lender if you don't know). Then multiply the two to see how much it'll cost you if you stick.
STEP 3: F<strong>in</strong>d the cheapest new loan for the settlement figure. For borrow<strong>in</strong>g under £3,000, the cheapest route is likely to be do<strong>in</strong>g a
money transfer (see above). Above that, a cheap loan w<strong>in</strong>s. Use our free Loans Eligibility Calc to see your likely cheapest deal. Yet
remember; with loans, only 51% of accepted customers need get the advertised rate.
STEP 4: F<strong>in</strong>d out which is cheaper. Use the MSE Loan Switch<strong>in</strong>g Calculator to see whether you should stick or not.
Cut store card costs
Store cards are basically just credit cards, but a lot of them have much higher <strong>in</strong>terest rates.
For example New Look's is 28.9% APR <strong>and</strong> Argos’ is 29.9%. You can transfer the balance on these to a better credit card too.
5. What about student loan?
Mart<strong>in</strong> suggests leav<strong>in</strong>g your student loan while you get your other f<strong>in</strong>ances sorted. He said: “While it's counter-<strong>in</strong>tuitive, you're actually
better off just to leave it.”