Instant Returns on Pension Contributions

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Instant Growth of 36.36% on Your Money

In the current investment market there is very little opportunity as far as most people can see it to make a decent short-term return on your money.

There is however a nice tool which can be used to generate an immediate return of 36.36% on your money invested.

This tool is a personal pension plan – the plan works by allowing tax-relief immediately on any contribution made into the plan. For basic-rate taxpayers, the immediate rate of relief is 20%.

For example, if an investor makes an initial net investment of £80, under PRAS (Pension Relief at Source – which is available to both employed and self-employed investors) the actual gross amount invested is £100 – the pension provider reclaims income tax of £20 from HMRC on behalf of the investor.

If the investor is over the age of 50 they can currently vest their benefits and under pension legislation can take up to 25% of their fund as a tax-free lump sum with the remaining fund providing pension income – normally by way of annuity purchase or income drawdown – or alternatively take no tax-free cash and use the whole fund invested to provide retirement income (which remember is subject to income tax.

Enjoy Discounts on Pension Funds and ISA’s – Hargreaves Lansdown

In our scenario above, the investor would probably take the tax-free cash – it is generally better to have this cash tax-free in the hands NOW rather than taxed in the hands over time although the most appropriate course of action depends on your own particular circumstances – please take suitable advice from an IFA.

In this scenario then, having made an initial investment of £80, the investor has received an immediate pension fund of £100.

By taking 25% tax-free cash they will receive back £25 (25% of the fund value) which leaves their fund valued at £75 with them having made a net investment of £55 (£80 invested minus £25 tax-free cash received back).

£75/£55 – an instant return of 36.36% on the money invested.

The investor is then free to take an income from these pension funds, normally through annuity purchase or income drawdown arrangements, but the initial gains on the money invested of 36.36% will have a corresponding increase to the level of income which the investor can take from their pension fund.

Naturally we would strongly urge you to take independent financial advice before investing in a personal pension or other investment vehicle to ensure the course of action you are taking is the most appropriate given your own particular circumstances.

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Budget 2009 – The Key Changes

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Alistair Darling, Chancellor of the Exchequer presented his Budget for 2009 last week and below are the main points and changes contained in the Budget:

The Economy

Whilst the economy is expected to shrink by 2.5% during 2009, the Chancellor indicated that there was the expectation that the economy would grow next year, 2010, by 1.25%. I our opinion this is an optimistic forecast and we believe that growth in the economy is unlikely. He then said that the economy would grow by 3.5% annually from 2011. Whilst we would expect the economy to be heading out of recession by 2011, again we would comment that growth at these levels is again unlikely.

Borrowing by the Government is estimated to amount to £703 billion over the next 5 years which, in our opinion, is a large burden for the UK economy to endure.

Income Tax

In order to boost funds to meet this borrowing expectation, the Chancellor announced that income tax for those people earning more than £150,000 would rise to 50% from April 2010. The one comment we would make on this is that this would be fairly ineffective as people falling into this tax bracket will no doubt come up with methods and techniques to get around this additional tax burden.

In addition to this, he also reduced tax relief on pension contributions for people falling into this tax bracket, again from April 2010.  The level of tax relief for people earning over £150,000 will fall from 40% to 20% following introduction of a taper. To this end, many high-earners will consider making pension contributions following a “salary sacrifice” exercise – by effectively reducing their income levels, it is then possible for their employers to contribute directly to their pension plans, and this can be topped up by the employer also contributing some or all of the National Insurance saving enjoyed following the reduction in salary.

Employment, Jobs and Training

The Government announced support for the economy to protect 500,000 jobs and also indicated that redundancy payments would increase from £350 to £380 per week for those made redundant. From January, everyone under the age of 25 will be offered a job or training place, with additional funds paid on top of the benefits they are already receiving – in addition to this there will also be additional support for those people who have been out of work for more than 12 months.

It was also announced that funds would be made available to create an additional 54,000 places in sixth form education.

Housing and Accommodation

The government is concerned about housing and announced plans to provide £500 million to kickstart the housing market, with £100 million being made available to local councils to build energy-efficient homes. Many commentators have said that this is inadequate and will not provide for the true number of new homes needed each year. £80 million will be made available for a shared equity mortgage scheme to promote home ownership as well as £50 million to upgrade military housing.

The current stamp duty holiday for house purchases below £175,000 has been extended until the end of the year in an attempt to help first-time buyers.

The Environment

The government is committed to cutting carbon emissions by 34% by the year 2020. An extra £1 billion will be made available to attack climate change by supporting low-carbon industries. £525 million will be made available for offshore wind farms as an alternative energy source over the next 2 years with £435 million to help with energy efficiency schemes for homes, companies and public buildings.

Business

Help was announced for loss-making businesses – they will be able to reclaim more taxes paid for the last 3 years until November 2010 with the main capital allowance rate doubled to 40% in an attempt to help companies bring forwards capital investment decisions. Also announced was a £750 million strategic investment fund to help emerging industries and those industries which has an important regional position.

Savings and Investments

The annual ISA allowance was raised from £7,200 per annum to £10,200 per annum. This will be introduced from 6th October 2009 for over 50’s and from 6th April 2010 for the rest of the population.

Grandparents

Those grandparents of working age who care for their grandchildren will see their basic state pension increased to take account of this. The winter fuel allowance will be maintained at the higher level of £250 for those over the age of 60 and £400 for those aged over 80 for another tax year.

The Chancellor also announced that there would be a minimum increase of 2.5% on the basic state pension, regardless of what RPI, the index to which inflation is linked, does.

Child Benefits

The child tax credit will rise by £20 by 2010 and child trust funds for disabled children will rise by £100 per year with those for severely disabled children rising by £200.

Cars – Scrappage Scheme

A new scheme will be introduced in an attempt to remove older, more polluting cars from our roads. From March 2010, £2,000 discount will apply for those people who trade in their existing cards over 20 years old in exchange for a new car. In order to qualify they will have to be shown as the registered keeper of the vehicle for the 12 months prior to the purchase and it is expected that the Government will provide £1,000 towards this scheme with the motor industry providing the remainder.

And finally (!) – Cigarettes, Alcohol and Fuel

Tax and duties on alcohol and cigarettes is to rise by 2% – putting a penny on a pint and 7 pence on a packet of 20 cigarettes on average.

Fuel duty is to rise by 2 pence per litre and then by 1 pence above inflation each April for the next four years.

 

So there you have it – how as the Budget affected you? Who do you feel are the winners and losers of this Budget? Please make your comments below.

Concerned about Stock Markets? ISA Cash Park

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How to Park your Money in an ISA

Many people are concerned about the current state of UK and world stock markets, together with other investment asset classes, yet they would still like to utilise their ISA allowance for the future tax-efficient benefits which an ISA investment can provide.

There is a solution.

At present it is possible to invest up to £7,200 into a Stocks and Shares ISA, with up to £3,600 of this limit being allowed to be held in a Cash ISA – with the balance available to be placed into a Stocks and Shares ISA.

For example, if you invested £2,000 into a Cash ISA in the current tax year, you would still be able to invest £5,200 into a Stocks and Shares ISA.

Following the announcement in the Budget today (22nd April 2009) by Chancellor of the Exchequer, Alistair Darling, the ISA limit will increase from £7,200 per year to £10,200 per year total (which can include up to £5,100 in a Cash ISA) for those aged over 50 on 6th October 2009, and with the remainder of the eligible population being able to invest £10,200 from the start of the next tax-year on 6th April 2010.

Many people would like to invest their full allowance within an ISA but are concerned with continuing stock market volatility and econnomic uncertainty over the short to medium-term.

Many ISA providers are acutely aware of the concerns which investors have at present in placing their money into equity and other asset classes. They are therefore offering a “cash holding” or “cash parking” facility whereby an investor can place money into an ISA today, thereby securing their entitlement to their ISA allowance and deferring their investment decision to a later date when they may feel more confident about economic conditions and stock market outlook.

The money held in the “cash park” of a Stocks and Shares ISA may receive interest (see below regarding tax position).

Important Points to Note

Any money held as “cash” within an ISA is a temporary position as the Inland Revenue expect you to ultimately invest these funds into funds. The cash fund may receive interest whilst the funds are held as cash – this interest will be subject to 20% taxation – which is in line with the tax position on interest received from a bank/deposit account.

The main difference here though is that this tax is not reclaimable by a non-taxpayer.

No Cash in a Stocks and Shares ISA

It is also important to remember that regulations do not currently allow a “cash” fund to be held under a Stocks and Shares ISA – therefore any decision to invest cash into this type of ISA must ultimately be made with a view to investing in mutual funds at a later date.

Conclusion

This is a useful facility for those people wishing to invest in an ISA but not wishing to commit their funds to a fund carrying risk in the current economic and investment climate.

Change in ISA Allowances – Budget 2009

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Budget 2009 – ISA Allowance Increased – from 6th October 2009

In his Budget speech on the afternoon of 22nd April 2009, Chancellor of the Exchequer, Alistair Darling, announced that with the maximum amount which can be invested in a tax-efficient ISA will rise from £7,200 to £10,200.

(Ed. – This rise is long over due, with the only previous rise, since ISA’s were introduced in 1999, being  from £7,000 to £7,200. Had the ISA allowance increased in line with average earnings inflation since 1999 then today the ISA allowance should be in the order of £10,500).

New ISA Allowance Limits

Investors will be free to choose whether to invest the full £10,200 into the Stocks and Shares element or to place up to £5,100 into a Cash ISA, with the remainder of the allowance being invested in a Stocks and Shares ISA.

When do the new ISA Allowance Limits Start?

This change in ISA allowance will see the total amount which can be invested in a tax year increase to £10,200 from 6th October 2009 for those aged over 50 with the rest of us being entitled to the additional allowance from 6th April 2010 – effectively 12 months to wait for those under 50.

In reality though the increase in allowance, although welcome, will see only a small increase in the amount of tax saved by UK investors in Cash ISA’s given the very low level of current interest rates.

For example – for a Cash ISA investor this means that an additional £1,500 can now be invested in a Cash ISA.

With the average Cash ISA paying in the region of 2.5% -3.0% gross, the actual tax saved will be between £7.50 and £9.00 per annum under current interest rates.

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Deflation – it’s official!

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What is Deflation?

A deflationary climate has returned to Britain for the first time in nearly 50 years.

The Retail Prices Index (RPI) measures a theoretical basket of goods and compares changes in the price of the whole basket over time. For the first time in five decades RPI was lower over a 12 month period.

In March 2009 RPI was 0.4% lower than 12 months earlier in March 2008. In the short-term delfationary pressures could make the recession we are currently going through worse than expected as the general level of prices continues to fall.

Some people argue that falling prices is generally good for consumers, and therefore the economy, however if these deflationary pressures become entrenched over the medium term then this will actually hurt the economy as consumers will effectively stop buying products today in the hope of even greater savings to be made tomorrow.

The Office of National Statistics has said that the largest constituent part of the “basket” which has pushed prices lower was gas and heating oil bills, with falling vegetable prices over the last 12 months also making a contribution.

Aren’t Falling Prices a Good Thing?

Not necessarily as it affects some consumer groups more than others. For example, pensioners receive a State Pension which is linked to RPI – they are therefore seeing little increase in the value of their State pensions. To compound the problem, the basket of goods which the average pensioner purchases is rising in price above inflation – in real terms therefore pensioners are becoming worse off.

Pensioners who depend on their savings for additional income over and above their pension income are also suffering at present from low interest rates on their savings accounts.

Pensioners are likely to see their pensions increase by no more than £2.40 per week next year. State pension increases are set with reference to RPI figure in September which was 2.5%. The likelihood is that State pension will increase by £2.40 per week to £97.65.

The other losers in a deflationary economy are those burdened with debts – they will suffer with the debt-deflation trap – which would see the “real” value of debts increasing as the general level of prices of all other items falls.

Deflation will also affect workers as they are unlikely to receive wage increases – business owners and managers will argue that the deflation of prices in the economy is providing a boost to “real” wage values without the need to put their hands in their pockets.

 

RPI and CPI

The Government’s preferred method of measuring prices is through CPI (Consumer Prices Index) which again uses a theoretical basket of goods and considers the change in prices of these goods and the relative weightings of each good sector within the basket. CPI excludes housing and mortgage costs.

At present CPI is running still in the positive at 2.9% per annum.

10 Great Reasons to Write a Will

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In our previous article we considered the basics of will writing, setting out the key people involved in the writing and execution of a Will.

In this article we will consider the REAL benefits to be enjoyed from ensuring you have a properly written Will.

10 Great Reasons Why You Should Write a Will

1. To allocate assets between different people.

You may wish to leave jewellery to a niece, or promised a grandson your war medals. A Will can formalise all these gifts and help prevent family arguments – remember this – family and money rarely mixes!

2. If you’re not married then you need to make Wills.

There is no automatic transfer of assets between couples who are cohabiting. Other than jointly owned asset which would pass to the surviving owner on first death, in law, all other assets could pass back to the deceased’s family under intestacy rules. In practicality though it is unrealistic to expect your deceased partners family to come asking for his/her DVD collection but a Will formally arranges your affairs after death and avoids problems later.

3. Leave assets to an ex-partner.

It could be that you have now remarried or are living with someone else. A Will could be used to leave assets to an ex-partner, for example, they may have made a large gift to you during your relationship which you would like to return to them in the event of your death.

4. Reduce the amount of Inheritance Tax you pay.

In the current tax year we can each leave an estate of up to £325,000 (2009/2010 tax year) with immediate liability to inheritance tax. Anything we own, over and above this £325,000 Nil Rate Band is chargeable to Inheritance Tax at a rate of 40%. A Will could be written to leave up to £325,000 to be split equally between children or held in Trust for their benefit. Under a normal “British” Will it is usual for all assets to pass between husband and wife. It might be prudent to still include a will trust to hold £325,000 for the benefit of your children – leaving all your assets to your spouse could see that money all eaten up in care home fees – it is vitally important that you take legal advice in this respect.

5. A Will can be used to make assets skip a generation.

It may be that your own children are financially successful in their own right. Passing assets to them on your death may be of no benefit and could simply compound their own Inheritance Tax problems later by artificially expanding their Estates. If this is the situation then why not leave your Estate to benefit your grandchildre, or even great-grandchildren if that is the case.

6. A Will can be used to set up a Trust.

If you are fortunate to have a very large Estate you may choose to set up a Trust to benefit a local charity or support group in terms of providing them with a regular income. Seek legal advice if you are considering this course of action.

7. To avoid Intestacy.

If you don’t make a Will then the Government have already made one for you. These are known as the rules of Intestacy – you are said to have died “intestate” if there is no valid will at the time of your death. For example, if you are married and die with a spouse and children then your spouse doesn’t automatically get eveything – if your Estate is less than £250,000 everything goes to the surviving spouse. If the estate is over £250,000 the surviving spouse gets £250,000 and all personal possessions.

Half of the remaining estate is split equally between the children with the spouse retaining a “life interest” e.g an income from the remaining 50% with this 50% ultimately being split between the children on second death.

As you can see – assets being allocated in this manner can and does cause problems after death.

More information on intestacy rules can be found here – HMRC – Intestacy Rules

8. You need to appoint Guardians for your children – this is vitally important.

In the absense of a Will it would be the Courts/Social Services who decide where your children are best placed – and it might not be with the people you thought would look after and raise your children. By making a Will with Guardians named for your children you can avoid this uncertainty. You should also consider putting in place life insurance to provide for your children in the event of your death – consider this – it could be very difficult if one day two children turned up on your doorstep expecting to be looked after until they are 18 and there is no money there to fund them!

9. If you are separated but not yet divorced.

You should write a will with the will written in view of the divorde going ahead as there is a possibility in law that, in the event of your death, your asset could pass back to your ex-partner. Although you are separated, in the eyes of the law your ex-partner might be entitled to your Estate after your death!

10. If you have been married previously or you don’t trust/like your spouses family.

You might care to write your Will so that in the event of you both dying together your assets don’t end up passing to your spouse’s family. For example, if you were killed in a car crash, in the eyes of the law, the eldest person is deemed to have died first. It is possible that their Wills leave all their assets to their families – you could see your assets momentarily pass to your spouse before passing straight to her family. Is this what you want to happen?!

We hope this article was of some benefit in sparking an interest in writing your own will.

Will Writing – an introduction

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Why you need a Will

There are many reasons why it is prudent from a personal, as well family perspective, to ensure you have a suitably worded Will in place – and Will Planning is not just for old people either!

What is a Will?

A Will is your written instruction which formalises what is to happen with your estate, and your children, after death. It can be a shrewd tax and estate planning instrument when used correctly and there are also a number of reasons why you should write a will sooner rather than later. We will cover these further in our next article in this series. This article is an introduction to Will Writing.

There are several ways in which a Will can be written – you could use the services of a Solicitor, a Will Practitioner/Specialist, a financial adviser or even a “DIY” Will purchased from a stationers.

In order to make a Will you need to be of sound mind and over the age of 18.

What is contained in a Will?

A Will sets out the administration of your estate in the event of your death. In it you can state your funeral preferences together with details of any gifts to charity or the National Trust.

Individual items can also be named, for example, leaving jewellery to a daughter or military medals to a grandson.

The Will for the most part will deal with the distribution of your estate – these are all your worldly goods and possessions. It is common for married couples to leave everything to each other and then shared equally between children on second death – this is generally known as the “Great British” Will – and may or may not be the most efficient and effective way of administering your Estate.

Who is involved in the Writing of a Will?

As the person making the Will you are known as the Testator (Testatrix if female) and the Will will be witnessed by two individuals who are not to benefit under the terms of the will – these are the Witnesses.

In the Will you nominate a person or people to administer your Estate after your death – these people are known as the Executors and it is their legal obligation to ensure that your wishes are carried out to the best of their ability.

I have an existing Will – does it need changing?

It is important to ensure you review your Will on a regular basis as people’s circumstances do change and the Will previously written may no longer match your wishes.

In addition to this, on several occasions, during my time as a financial adviser, I came across situations where people simply do NOT have a valid Will – in one case for example, the person had received their copy of the Will back from the Solicitors office and had simply filed it away without signing and witnessing the Will – remember – you need to ensure you sign your Will and that this signature is witnessed by two independent witnesses for it to be valid.

Is it feasible to make my own Will?

Although it is possible to write your own Will it is always advisable to have your Will written by an expert, such as a Solicitor or STEP practitioner.

A word of caution – in many cases the person writing the Will may wish to add themselves to the Will as an executor – I would always err on the side of caution at this suggestion. This person would be acting in a professional capacity and therefore the level of charges which might be incurred could be an unknown. You could in effect be writing a “blank cheque” on your estate by including a professional to act as an Executor on your Will. Remember – the other people acting as Executors (e.g. family) can always bring in professionals to act, at an hourly rate or agreed cost basis, should the need arise.

Next article – 10 GREAT reasons for Writing a Will

Cashflow Forecasting – planning income and expenditure

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Introduction

Historically, cashflow forecasting was a method used by business owners, managers and accountants to analyse income and expenditure over a set period of time. By analysing inflows and outflows of cash for each period, e.g. each month, they were able to see what strains they would have on cash at any one time – e.g. was there any particular month or months where they needed to draw on other sources of cash.

Similarly, the use of a spreadsheet allowed the business manager to perform a number of “what if” scenarios – “what if” price increased 10%, “what if” this loan was repaid early.

Cashflow Forecasts and Personal Financial Planning

These same principles can be applied to your own personal finances. We all tend to have the same regular inflows and outflows of cash – e.g. if you’re in a salaried position then your net take home pay will tend to be the same each and every month. It is the irregular payments that can cause problems, for example car insurance premiums paid on an annual basis, payment for holidays etc.

By entering your expected income and expenditure each month into a spreadsheet it is possible to see the monthly flows of cash that you expect to occur.

The spreadsheet which accompanies this article contains most areas the typical family might find in terms of income and expenditure.

To Download Cashflow Forecast

Download the cashflow forecast spreadsheet –

Excel 2003 version – cashflow_forecast.xls

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I hope you find the cashflow forecast spreadsheet useful.

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Prepaid Credit Cards

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Introduction

Prepaid credit cards are far from a new idea – the principle has been around for many years with such items as prepaid electric meter cards etc all working on the same principle.

In essence what a prepaid credit card offers is the facility to make purchases and payments through the Visa or Mastercard system, in the same way as someone using a “normal” credit card would – this is the same for purchases both in stores, shops, restaurants etc. as well as with online shopping on the internet.

They have a number of benefits over and above a “normal” credit card and these features and benefits will be considered below: –

Available to Almost Anyone

One of the downsides of a normal credit card is the need for the applicant to pass a credit check with a Credit Reference Agency – if you’ve got or have had a history of arrears, CCJ’s or Bankruptcy then obtaining credit can be very difficult if not impossible. Applying for a prepaid credit card normally does not require a “credit check” as the applicant is not actually applying for credit.

Top up direct or through outlets

Money can be added to your card either through a standing order from your bank account on a monthly basis, or through cash deposits at any number of retail outlets, including Post Offices. Check where it is possible to top-up your card before completing an application.

Help with Budgeting

By depositing a fixed monthly sum onto your card you are effectively limiting the amount of money available to spend through that card – remember, you are not borrowing any money from the card issuer. Say for example you are trying to reduce expenditure in one particular area – set a monthly budget for that area of expense and set this as your regular top-up – once the money has gone you will have reached your target for that month.

Different Types Available

It is possible to choose from several different types of card – you may have a personal preference between Mastercard, Visa or Maestro. These days the differences between Mastercard and Visa are fairly small – Mastercard tends to be more widely accepted in America with Visa more popular in Europe – both cards are normally accepted at most outlets.

Increased Security

Carrying a pre-paid credit card is a good idea in our opinion, preferable to carrying lots of cash. In the event of loss or theft simply report this to the card issuer as soon as possible and they should be able to cancel/block the card to limit the amount of money which you could lose through someone else using the prepaid card.

Ideal for Travelling

One idea which might be of interest to you is the use of a prepaid card whilst travelling or on holiday, either in the UK or abroad. No matter where you go in the world the card could be topped up by a friend or relative based here in the UK. A cheap alternative to other forms of transferring funds abroad – simply ask your prepaid card provider to issue a second card on your account and pass it to a friend or relative who can then use that card to top up cash here in the UK.

The great thing about this idea is that if you deposit money to the card here in the UK through certain outlets then the funds are credited to your card almost instantly! Check with each provider before applying for a prepaid card that they offer this second card facility and that they allow instant top ups through selected retail outlets.

Ideal for Shopping Online

A prepaid card can normally pay for itself in no time – especially if you are keen on online shopping – it’s common to be able to make great savings online through shopping around different retailers. Often though people are concerned about security with online shopping – particularly with “phishing” and other scams being carried out. With a pre-paid credit card though the amount of money at risk is limited to the amount of cash that has been credited to the card.

Ideal for Business Use

Many companies need to issue their staff and employees with credit cards. With a prepaid card it is simple to limit the amount of funds available for use by each employee – a different amount could be credited to each credit user on a monthly basis making budgeting more straightforward for the company.

Debt-snowball – repay your debts quicker

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Debt-Snowball – Repaying your Debts Quicker

It is common for people to have more than one debt – for example you may have a mortgage, a personal loan, a few credit cards, hire-purchase etc. Nobody likes debt, unless it is being used as leverage for an investment, and for the majority of people the quicker it is paid off the better!

Snowball those Debts

Consider a hypothetical situation whereby you have say 3 debts as shown in the following diagram –

debt-example

In this example the borrower owes a total of £105,600 and is paying £759 per month for this benefit. There have been other methods mentioned on the internet whereby you effectively repay the smaller debts first. I can understand the psychology of this approach – it is easier to cope with one large debt than several smaller debts. In the example above, any surplus funds would be used to pay off Credit Card 2 first – this debt could be cleared fairly quickly based on the amount remaining outstanding and in terms of “cost” it carries an interest rate of 16% making it the second most expensive debt.

The Logical Approach to Debt Repayment

Regardless of the amount of debt outstanding let’s focus on the Interest Rate.

The interest rate tells us the “cost” of owing that amount of money. For example, with Credit Card 1 the interest rate is 19% – therefore for every £100 that we owe to that lender they will charge us £19 for those 12 months – it’s as simple as that.

To demonstrate the logic of this, consider a situation where you owe £100 to each of Credit Card 1 and Credit Card 2 in the above example – Credit Card 1 is “charging” you £19 per year for this privilege and Credit Card 2 is charging you £16 per year. If you had £100 available to repay one of those two credit cards which one would you choose? Logic dictates you repay the more expensive one first.

Conclusion

Therefore, the logical conclusion is to check all your debts and see how much they are costing you each year – check carefully as interest rates have a nasty habit of increasing beyond what you THOUGHT you were paying over time. Once you have drawn up a “league table” maximise all efforts to repay your most expensive debt first, making just minimum payments on the remaining debts – as soon as the first (most expensive) debt is paid off move on to the next one.

Action

Make a list of all debts and interest rates – make a concerted effort to repay the most expensive ones first. Maybe consider transferring any outstanding balances from higher charging credit cards to those with a nil or lower introductory balance allowing you to make greater savings and, thereby, repay your debts quicker.