Tackle bad debts first

BEFORE overpaying on your mortgage, first turn your attention to clearing any ‘ bad’ debt. This includes credit cards and personal loans.

The interest charged on c re d it can lead to unmanageable repayments, so clearing these should take priority.

Makala Green, of Schroders Personal Wealth, says: ‘It’s a good idea to clear the debt with the highest interest rate first.

‘If you are struggling with credit card debt or loans, consolidate them to reduce interest.’

It is also wise to have an emergency fund built up. This is typically three to six months’ salary.

The experts also warn against neglecting or reducing your pension payments to focus on your property.

Ms Green says: ‘Pension planning should always be a priority, regardless of your age. Check how much you have built up in your retirement to make sure you’re on track.’