7. Never borrow more money to pay off debts

Although quick fixes like payday loans may seem like easy money, they often come with phenomenally high rates of interest and numerous other charges if you pay late.

Defaulting on paying off the loan could do further damage to your credit rating. Focus on the existing debts, and when you’ve paid off what you owe, take the money that you were putting into repayments and put it into savings. This will give you a healthy financial buffer in tough times, while also giving you a pot of cash to use for everything from debt-free holidays to brand new cars.