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STARTING WORK

Should I borrow money?

• Borrowing money is expensive.

• If you have a credit card, remember that monthly interest payments on outstanding balances are very high.

• If you have a bank account, some banks give a free overdraft cushion. If you go beyond the limit set for such an overdraft, arrange the overdraft limit with the bank - unauthorized borrowing can be very expensive.

• Remember that if your budget was tight before you took out the loan/overdraft, it will be tighter still when you have to start making the repayments (which will be immediately).

• If used wisely, credit cards can give you 51-56 days of interest free credit (depending on the time of the month the purchase was made).

• If you can't pay the full outstanding balance on your credit card in a month, pay the minimum repayment shown - interest is normally charged on the whole amount - even the amount you repay!

• Store cards are generally more expensive than bank credit cards - however, you may find it easier to qualify for a store card. Some store cards give immediate discounts. The discount may be worth taking up - even if you repay the first month's outstanding balance in full, then cut up the card.

• If you already have a student loan, or taking out a new one, you must start repaying the loan if you are earning £10,000 a year or more (2004) but this figure will change to £15,000 from April 2005. Interest is charged in line with the rate of inflation.

REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.