Wednesday 27 July 2016

Credit Smoothing.

It is better to have a surplus of £100 all year than a credit balance of £6,000 one month and a debt of £1000 the next. This is for two reasons. Firstly, banks charge greatly more on overdrafts than they pay on credit balances and so a person with erratic finances will lose more than he wins. Secondly, erratic finances will damage a persons credit score even with a good income.

No comments:

Post a Comment

I moderate the comments for spam but welcome contrary viewpoints.