Credit cards have taken a fair amount of flack over recent years, and have been blamed for making a large contribution to the UK’s huge personal debt mountain. Whilst many people do find themselves struggling with credit card debt, often because they overspend or because they make only minimum repayments and are hit with huge interest charges, credit cards can be a very useful financial tool for those that use them sensibly and responsibly.

It can be very easy to get yourself into high levels of debt with a credit card. If you make regular cash withdrawals and transactions you will be hit with huge fees and charges, as well as interest. If you miss repayments or make late repayments you could face regular penalty fees of up to £12 each. If you make only the minimum repayment you will be hit with hefty interest charges and could be paying the debt off for many years. This is why you have to be very careful about how you use and repay your credit card. Below are a few tips that could help you to cut back on your credit card debt.

Pay off as much of your credit card as possible each month. If you can pay off your card in full each month then you will not be hit with any interest charges, and this could save you a fortune. However, if you cannot pay the full amount do try and pay as much as possible, and make additional lump sum payments whenever you can, as this can make a real impact on your debt.

Don’t make cash transactions or withdrawals on your credit card, as you will be charged interest and fees even if you repay the balance in full – there is no interest free period with these transactions. Therefore you can make savings by avoiding making transactions such as these.

Set up a direct debt or standing order for your repayments to be made, as this will ensure that you do not miss or make a late repayment, which could save you a lot of costly charges that can bump up your balance.

Consider transferring your debt from existing high interest cards. If you have outstanding balances on high interest credit cards consider transferring the balances on to one 0% balance transfer card or a low rate life of balance transfer card. This could save you a fortune in interest on the total amount that you owe, and you will only have to deal with one credit card debt rather than several

Take out a 0% purchase credit card. If you like to spend on your credit card and you need to spread the repayments consider a 0% purchase card. These cards offer long interest free period such as six or twelve months, giving you plenty of time to clear your balance without being charged interest.

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