Independent UK Credit Card Comparisons | Today is Thursday, July 28th, 2016

"Credit Card Rules Everyone Should Follow"

By admin | November 17th, 2012 | Credit Cards, Featured

Credit cards play a big part in many people’s everyday lives and used well and responsibly, they can be useful and efficient tools. But all too often, they can become dangerous. Some people build up large balances, which attract high interest rates and become ever harder to repay.

To avoid this scenario, there are some basic guidelines that everyone can follow to make the most of credit cards and work them to their advantage.

Firstly, choose the right card by comparing credit cards at Don’t be distracted by special offers and gimmicks and check the underlying interest rate (the APR) instead.

Some of the most heavily marketed credit cards actually have the highest interest rates, but these are disguised by things such as Airmiles, points or cashback sums. Of course, these bonuses are great but to genuinely benefit from them, you need to be paying your credit balance back in full every month.

Ideally, find a card with the lowest APR. If you have existing credit-card debts, look for a zero-per-cent balance transfer card for a year or more. These will freeze your interest payments effectively until you have paid off the balance. Just ensure that you don’t buy anything further on these cards – cut them up as soon as you’ve done the transfer and focus on repaying each month. Purchases on these cards will be very expensive.

Stick to a Budget

The cornerstone of good financial management is to spend less than you earn. To do this, set out a clear budget and stick to it. Keep a spending diary to see how much you are spending each week and identify where there is room for improvement.

You will probably find various things you never before factored into your budget, such as odd cups of takeaway coffee here and there, overdue fines, a magazine or a spontaneous clothing purchase. They soon add up.

Within your budget, detail all your fixed and essential costs, such as rent or mortgage, bills, travel and utilities and then see what’s left for food, entertainment and other discretionary areas. Food, of course, is an essential purchase but it’s often an area which can be more closely budgeted for with advance preparation, shopping lists, cooking in bulk and recipes which use more fruit and vegetables and less meat.

Keep Your Wits about You

Experts recommend thinking about credit-card debt as a snowball that rolls downhill and gets bigger and bigger. If you have existing debts, focus on paying off those with the highest interest rates first.

Keep an eye on dates, so you know when promotional rates end and when payments have to be make. Ideally, set up direct debits so that you don’t get charged for late payments and use online banking to keep a close eye on your balances.

Finally, take responsibility. Your debts are your own and you must deal with them. Of course, if you are struggling and unsure then there are sources of help, such as the National Debtline and the Citizens’ Advice Bureau. They will help you to develop a debt-management plan and consult with your creditors. Showing a proactive approach will stand you in good stead and ensure a healthier financial future.

Related Articles:

  • Budgeting vital for credit card consumers

    Industry officials have been urging consumers that have credit card debts to ensure that they budget effectively for their debt, otherwise they could quickly fall behind and find themselves unable to cope with repayments on what they owe on the credit card. A leading debt advice company in the UK has been offering advice and...

  • How to Manage Your Credit Card Debt

    Credit card debt is one of the leading causes of people getting into financial difficulty causing them great stress and worry about how they are going to manage to make their payments. Once you do realize that the reason you are in such difficulty is your mismanagement of your credit cards, you don’t have to...

  • Consumers experiencing credit card woes

    According to a recent report many consumers are suffering because of the state of the credit card market at present, and there are a number of reasons why credit cards keep hitting the financial headlines. One of the major stories that has come to light about credit cards recently is the fact that whilst the...

  • New 0% balance transfer card launched by Abbey

    Earlier this month the Spanish owned High Street bank, Abbey, launched a new balance transfer credit card that could benefit many consumers. The credit card that was launched by Abbey offers consumers 0 percent interest on balance transfers for the first fifteen months, enabling those that transfer their existing credit card debts onto the card...

  • 0% balance transfer credit cards – the facts

    The 0% balance transfer credit card is designed for those with existing credit card balances on which they are being charged high rates of interest. These cards enable borrowers to transfer these existing balances, thus benefiting from having just one credit card debt to deal with and more importantly avoiding interest charges on the balance...

Post A Comment:

Virgin Credit Card image

MBNA Platinum Credit Card

Other Recent Articles

What You Need to Know About Payday Loans

It’s highly likely that one day, you’ll be faced with an emergency situation that requires fast cash to remedy. This...

By admin | October 29, 2013 | Read More

How to Use a Credit Card to Restore Your Credit Rating

An increasing number of people have realised the importance of their credit history and credit score over the past few...

By admin | July 9, 2013 | Read More

How Can a Student Bank Account Help You Avoid Debt?

Being a student right now isn’t very easy, given the tuition fee rise and the general malaise that comes...

By admin | May 10, 2013 | Read More

Play safe – have fun for free in exchange for providing your credit card details

When you register online to use any reputable gaming site, the chances are that you will need...

By admin | April 5, 2013 | Read More

Smart and effective steps to become debt free on your own

Are you someone who had the habit of whipping your plastics while making every single purchase? If answered yes, you...

By admin | June 6, 2012 | Read More