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Keeping On Top Of Credit Card Debt

The UK is a country that pretty much exists from borrowing. Keeping on top of credit card debt can be difficult when so much is owed by so many. But it is imperative if you have such debt that you do not let it spiral out of control. We took a look at how you may best achieve that.

Pay More Than Obliged To

When you apply for a credit card, you’ll receive a monthly statement that details the minimum payment required to avoid fees.

It’s tempting to look at this modest figure and decide to stick with it, but you shouldn’t. In an ideal scenario, you would pay off your balance in full and avoid any debt, but if that isn’t possible, pay as much as you can.

Paying the bare minimum may result in a significant interest payment at the conclusion of your term.

Keeping On Top Of Credit Card Debt – Don’t Store Details Online

Isn’t it amazing how simple purchasing has become these days? You may get a basket of groceries delivered to your door in just a few clicks.

Large shops make it even easier by allowing you to save your card information for future purchases. This is particularly problematic when it comes to credit cards, as it can lead to you spending money you don’t have.

Avoid this entirely by not keeping credit card information on your favourite websites and only using a credit card for needed purchases.

Keeping On Top Of Credit Card Debt – Intelligent Use Of Offers

When you first get a credit card, many lenders may provide an introductory “interest-free” period. If handled carefully, this might be a low-cost borrowing option.

For example, if you spend £1,500 for a vacation on a credit card with 18 months of interest-free credit, you may pay just under £85 a month over that time to pay off the debt and avoid paying interest.

When you get a new credit card, many lenders also offer free balance transfers. If you’re nearing the end of an interest-free period and wish to transfer your balance to a card with better conditions, this is a good option.

Keeping On Top Of Credit Card Debt – Don’t Pay For It

Make every effort to avoid paying fees and charges. If you make late payments or go above your credit limit, for example, you’ll be subjected to these penalties.

You could potentially be slapped with a large bill if you use your card to withdraw money or make payments outside of the United States.

Make sure you know how much you’d have to pay in such a case and try to avoid making such payments if at all possible.

Don’t Treat It As Free Money

Also, don’t think of your credit limit as a “quantity of money” that you can use. Credit card issuers may set a maximum of £4,000, for example, but if you used your card to pay for a £2,000 vacation, there’s no need to think of the remaining balance as free cash.

Every dollar you spend on your credit card is debt, and you must be able to repay it.

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