Related Credit Card Article

"Consumers should aim to pay off credit card balance in full"

By Reno | May 13th, 2010 | General

Many people these days have at least one credit card, and these pieces of plastic can provide us with ease, convenience, security, and flexibility. However, many people go about using and repaying their credit card the wrong way, and this can end up costing them a fortune.

One industry expert, Andrew Hagger, has recently highlighted how important it is for credit card users to try and repay their balance in full each month if they can. The amount of interest that some credit cards charge on balances that are outside the interest free period can be extortionate, and can really bump up the amount of the debt.

In many cases consumers really cannot afford to make the full repayment, but even then they should aim to pay as much as possible rather than continually making minimum repayments, which could make the debt stretch for decades and cost thousands in interest. If the cardholder can only meet the minimum repayment on a regular basis it is worth trying to switch the balance to an interest free balance transfer card to avoid paying interest.

Hagger pointed out that in some cases consumers were applying for cards such as rewards based credit cards, which offer rewards such as cash back, vouchers, discounts, and air miles for each pound spent on the card. However, they were then still spreading the repayments on the card. With the interest charges outweighing the rewards by a huge amount this would be a pointless exercise for consumers.

Those that do want to use rewards based cards should clear their balance in full each month so that they benefit from the rewards. Those that cannot make repayment in full each month should focus on a low interest or interest free credit card.

Tags: interest, finance, Credit Cards, interest rates, Credit Cards

Related Articles:

• Credit card customers need to think carefully about which card is right for them

  Industry experts are urging consumers to think more carefully about which credit card is right for their needs before making an application or any firm commitment, according to a recent report. Officials have said that in the current financial climate it has become all the more important to ensure that the credit card offers value...

• Those with debt may not benefit from rewards based credit cards

  A recent report has shown that whilst rewards based credit cards may prove beneficial for some consumers, those that are in debt or cannot repay their balance in full will not benefit from having these cards for a number of reasons. With rewards based credit cards users are able to earn rewards points, discounts, air...

• What’s the deal with rewards based credit cards?

  The huge plethora of credit cards on the market these days comes as great news for consumers, as it means that they have plenty of choice when it comes to finding the perfect credit card for their needs, as well as a wide range of providers. In the current financial climate it makes sense to ensure...

• Direct debit payments could help credit card customers to avoid charges

  A huge number of credit card customers decide, for one reason or another, not to set up a direct debit or standing order to make repayments on their credit card bill, and instead make a manual payment online, by cheque, or by phone when their credit card statement arrives. Whilst this may be an effective...

• Plastic can work out more expensive than a loan

  Officials have warned that for some people credit cards will work out to be more expensive than having a personal loan. Many people that take out credit cards and use them for their financial needs end up making just the minimum repayments on these debts, but with credit card debts so high this can work...

Other Recent Articles

Use of credit cards declines whilst payday loans increase

It seems that many consumers may have switching from spending on credit card that can sometimes come with high rates...

By Reno | February 10, 2012 | Read More

Useful Tips for Credit Card Holders

Modern technology offers comfort and convenience that is often helpful for people in a fast paced everyday living. With just...

By admin | February 7, 2012 | Read More

Credit card decision by Lloyds could have serious effect on charities

For many years now, a range of leading and well known charities have been able to boost the levels of...

By Reno | January 28, 2012 | Read More

Many have to rely on credit cards to make ends meet

There was a time when people had credit cards to enable them to pay for occasional larger, more expensive items...

By Reno | January 26, 2012 | Read More

Brits increasingly dissatisfied with credit card providers

According to recent reports, Brits are becoming increasingly dissatisfied with their credit card providers, particularly in the case of the...

By Reno | January 20, 2012 | Read More