2. Clear your credit card debt
One of the golden rules of financial planning is to clear your most expensive debts first, in other words your credit cards. OK, credit cards offer a convenient way to pay for goods and services but if you can't clear the balance every month, consider a low-cost loan as an alternative. Do the sums: a credit card debt (APR 16.8%) of £2,500 over five years will cost £1,212 in interest. A loan at 7.8% will cost £527. A saving of £685.