The Money Stop

Credit cards have proven invaluable to consumers in the UK over the years, and with such a wide range of cards now available there is something to suit everyone, from those looking for interest free credit to those with poor credit who want a chance to try and rebuild their credit rating. Credit card offer many excellent benefits, including total ease and convenience, as well as the chance to take advantage of a range of rewards such as cash back, rewards, air miles and more. Many cards also offer benefits such as extended warranty on purchases, protection against loss or damage of purchases, emergency card replacement services, and more.

However, although credit cards can be invaluable when used in the right hands they can also harbour many pitfalls, and many people find themselves struggling with credit card debt for years as they try to pay off the debt that they have accrued along with extortionate interest rates that are added by the lenders. It is all too easy to fall into bad habit and irresponsible practises with credit cards, which could leave you in debt and could result in your damaging your credit rating if you are unable to keep up with repayments.
There are some pointers that could help you to avoid many of the pitfalls associated with credit card use, including:

• Balance repayment: Try and repay the balance in full at the end of each month in order to enjoy the convenience, flexibility, and rewards of credit cards without incurring expensive interest charges or risking getting into unmanageable debt
• Balance transfers: If you already have a credit card balance and you are being charged interest at a high rate consider transferring the balance to a 0% balance transfer credit card, giving you time to clear the balance without incurring further interest. Alternatively, if you have a large balance and do not think you will be able to make much of an impact during the interest free period you may be better off transferring to a credit card that offers a low rate of interest for the life of the transferred balance.
• Consider your options: Based upon your spending habits and your repayments habits, consider what sort of credit card would best suit you and offer value for money rather than carrying on with the one that you already have without giving it any thought. You could choose from cards such as rewards based cards, interest free credit cards, charity credit cards, balance transfer cards, and more.
• Monthly repayments: Try and pay more than the minimum each month even if you cannot afford the whole balance, as otherwise you could find yourself facing a very long period of debt and hefty interest charges once your interest free period finishes (if you have one)

Related Posts

Barclaycard acting irresponsibly

Credit card provider Barclaycard has been accused of acting irresponsibly after it was found that the financial giant had been contacting customers in order to try and encourage them to take money out on their

Can you benefit from being a credit card rate tart?

There are so many different types of credit cards in circulation in the UK these days it can be difficult to determine which one might best suit your needs and circumstances. However, for some people

Business credit cards V charge cards

If you run or own a small business you will probably know how difficult things can become when cash flow problems arise, and this can make it difficult to make purchases for your business as

Credit Cards - Search UK Credit Card Deals

What is a credit card? A credit card is a card through which you are granted a specified amount of credit, and you can use this to make purchases directly with the card or to make

Avoid being the victim of credit card fraud

When it comes to credit cards consumers can look forward to a wide range of benefits, ranging from interest free credit and total convenience to flexible repayments and even a choice of rewards with some

Choose credit cards over store cards this Christmas

If you are planning to spread the cost of Christmas and the New Year there are a number of options available to you. For many people, particularly those lured into shops when the January sales

People should avoid “pitfalls” when writing a will, says provider

Everyone should not only write a will, but must write it out carefully and properly, according to Willcraft Services. The online will-making company also said that hiring professionals to do the job could be worth

Mates rates for mortgages?

Taking out a mortgage with a group of friends is an increasingly attractive option for people looking to get onto the property ladder, according to Moneyfacts.Moneyfacts is saying that while there are various concerns and