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"Young families should avoid being stung by credit card charges"

By admin | August 10th, 2009 | Credit Cards

According to an industry official many young families in the UK need to be more careful about reaching for their credit cards whenever they need financial back up, as the rates that credit card companies are charging many of them could leave them facing crippling debt that they are unable to keep on top of.

In the current financial climate an increasing number of families are turning to their credit cards to fund various needs and purchases, and with so little choice and such tight credit conditions still in place many have no choice but to pay the crippling rates that credit card companies are demanding of them.

Research has shown that the convenience, ease, and flexibility of credit card usage is now being overshadowed by the high cost of using a credit card, and unless families repay the balance on the card in full each month, in which case they do not get charged interest, then they are advised to think very carefully before they reach for their cards.

With average rates having soared to over 18 percent over recent months, the cost of putting purchases on the plastic can be extremely high, and industry officials are now warning against this unless it is a matter of urgency or unless the money will be repaid within the interest free period.

For those that have decent credit ratings there are still some other credit card options available, so some people that need to rely on a credit card could look at getting something along the lines of a 0 percent purchase credit card, some of which offer twelve months or more interest free credit on purchases.

However, these deals have been dwindling in numbers, and credit card providers have become far more stringent about who they will give these cards to, so for some families, such as those with damaged credit, this may not be an option.

Tags: credit card charges, Credit Cards

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