If you have high interest debt, such as payday loans and store cards, these should usually be your number one priority. If you have several debts, it's typically best to prioritize the ones charging the highest interest rates first.
It may be sensible to build up an emergency savings fund, to cover unexpected costs, before focusing on paying down other debt.
Early repayments and break fees
Certain loans and borrowing come with penalties or fees if you pay them back early. You should check the terms of any borrowing carefully before opting for an early repayment.
Tackle high interest debt first, like store cards and payday loans.
Build an emergency savings fund next, to meet unexpected costs like home repairs or losing your job.
Get into a savings habit by putting a regular amount each month into a savings account.
Make a plan to pay off lower interest, longer term debts.
Plan longer term savings to meet your financial goals.
HSBC has partnered with Everfi to create a series of modules on a variety of topics, including Savings, Banking, Credit Cards & Interest Rates, Credit Scores, Financing Higher Education, Renting vs. Owning, Taxes and Insurance, Consumer Protection, and Investing, giving you the tools to better manage your financial future. We hope these interactive digital modules can support your choices.
Additionally, HSBC has created the YourMoneyCounts financial wellness program which is presented by HSBC staff to the community in a classroom setting. Participant workbooks covering Budgeting, Credit, and Identity Theft and a budgeting worksheet are found through the YourMoneyCount link above. This program was created in partnership with the national nonprofit Greenpath Financial Wellness, and they provide free individualized support focused on your personal situation and financial wellness.