Debt to investing
There are some scary statistics when it comes to debt in the UK. For example it will take on average 26 years and 7 months to pay off the average credit card debt by only making the minimum payment per month. The average household debt £86,388.
One of the best ways to start investing is to pay down the high interest rate debt first, way before you start thinking about investing. The next step after that is to create a emergency account, this is where you will save money for unforeseen circumstances for example a car breaking down.
Only once you have paid off debts and created an emergency fund then investing is a viable option.
Data about debt references from The Money Charity
Credit cards & score
As above, UK debt is at a incredible level per household. Some of this is down to the easy access to credit and debt. It is understanding how to use Credit cards in your favour. Using a credit card can help you build your credit rating or even start off your credit report.
One of the best ways of improving your credit rating is to either pay off your debts as fast as you can (if you have debt) or to use your card frequently but on small transactions, but pay them off ASAP. This is the key to building a credit rating and staying out of debt. When the credit company can see you can take on small amounts of debt but can pay it off and not carry any debt over, this is where you will see one of the largest effects to your credit rating.