With all the temping deals on credit cards, it is so easy to think I'll put that purchase onto my card and worry about it later. Some see it as an extra source of finance which they don't have to worry about. This is until the statement appears, with a minimum amount to pay and a balance that is a constant reminder of the debt.
Don’t fall into the trap of just paying off the minimum amount on your card, as this is how credit companies keep you tied to them for years. By paying off that little bit extra each month above the minimum amount can significantly reduce the time in which it will take you to pay off the balance. It may be worth while working out exactly how much you can afford to spare each month to go towards your credit card. If you can afford that extra payment over and beyond the minimum amount, it is very worth while doing this especially if you are serious about clearing your credit card debt.
It sounds simple but many of us can’t help the temptation of spending on plastic. Avoid spending any further on your card, as this will just add to your debt and take you further away from that goal of paying it off. Cut up your cards and destroy them as this will help reduce the temptation.
If you have a few cards with varying interest rates, transfer your balances to a 0% credit card if at all possible. With so many to choose from you could be saving a lot of money on your interest. Alternatively call up every company you have a credit card with and ask if they might consider reducing your interest rate. You might be pleasantly surprised as a lot of companies would prefer to keep you as a customer than loose you to another credit card company as it is often difficult to find new business.
If you have some savings, it might be worth you looking at using part of these savings to pay off part or all of your credit card. This could prove worthwhile in the long run as for example you may only be getting 3% interest on your savings, but yet paying a massive 17% interest on your credit card debt. Only do this if you can afford to, and make sure you still have some savings left in case any emergencies.
If you can afford to, to get the most out of your credit cards it is best to pay off the amount in full each month. By doing this, you will avoid any interest payments that may be due and have less debt to worry about.
Please visit Credit Card UK for more information. Article Source: http://EzineArticles.com/?expert=Vim_Gadhia |
