@fitterfinance: Most people pay off their smallest debt first. It feels good. But mathematically, it could cost you thousands. Here's the rule that actually saves you money: ignore the balance, focus on the rate. Quick example with four common debts: 🔻 Overdraft: £200 at 40% → £80/year cost 🔻 Credit Card 1: £3,000 at 35% → £1,050/year cost 🔻 Credit Card 2: £10,000 at 20% → £2,000/year cost 🔻 Mortgage: £200,000 at 5% → £10,000/year cost The instinct is to attack Credit Card 2 because it has the biggest annual cost. But that's not where your money is best spent. Every £1,000 you clear at 35% (Card 1) saves you £350 a year — forever. The same £1,000 against Card 2 at 20% only saves £200. Higher rate, more saved. Every time. The right order: clear small high-rate debts (like overdrafts) first, then go highest rate to lowest — regardless of balance. After 15 years in markets, this is the single piece of debt advice I'd give anyone. Most people get it backwards. 📥 Save this if you've got multiple debts. 👀 Follow @fitterfinance for more UK money rules the banks won't teach you. ⚠️ Education, not advice. Speak to a regulated debt advisor for your specific situation. #ukdebt #ukpersonalfinance #ukmoney #debttips #moneytipsuk

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Tuesday 23 June 2026 19:27:45 GMT