How to clear your credit cards

To find out what rate of interest your savings are earning, you will need to either check your latest statements or find out the figure from your bank. Banks must let you know about changes to interest payments, so you are likely to have some paperwork with the details. You can also check our savings account comparison tables to find out whether you could earn a better rate - and if so, how that compares to the interest you're paying on debts.

The gross rate is what you are paid before tax, but you need to calculate the net rate to determine how much you will actually receive. If you are a basic rate taxpayer, you will lose 20% of your interest in tax, rising to 40% for higher rate taxpayers.

If you should not be paying tax, then fill in form R85 and the bank will be allowed to pay your interest gross.

Make a list of all of your savings accounts and write down the rate at which you're earning on each and compare this to the rate at which you're paying interest on your debts .

Chances are, you will find that you are paying a whole lot more interest on your debt than you are earning in savings interest, because rates available on savings accounts at present are so low compared to those charged on borrowing.