8. Insurance.
Getting into debt in order to avoid unanticipated spending that might put you in debt is not as difficult as it may appear.
Check to see if you need the type and amount of insurance you are thinking about. For instance, do you break or misplace your phone frequently enough to justify the monthly premium? Monitor your spending in your Money Dashboard account to determine whether it really does result in better value.
It makes sense to try to avoid paying insurance premiums via direct debit as this is often a form of loan to which the supplier adds interest charges, raising the overall cost of your insurance.
9. Sweets.
Even while it might not seem likely, screens are getting smarter, personalized marketing are coming, and contactless cards are making impulsive purchases easier than ever.
How is this related to increased borrowing? In three words: unintentional overdraft extension. If your overdraft balance is greater than £10, you will be assessed a hefty cost. The smallest thing can push you over your breaking point.
