The lifestyles that we lead in modern society can mean that we are often in debt to our credit cards. Holidays, cars, our homes, Christmas, there are so many times when we can feel that we just cannot afford to pay our way without resorting to the use of the plastic. The problem with credit cards can be just that, it doesn’t seem like real money, and we don’t have to pay it right away, so we can believe we can spend happily and worry about it later. And yet, with careful and sensible use, our flexible friend (I’m showing my age there aren’t I) can be a real asset, especially during tougher months.
Choose your card carefully
The first rule of taking on a credit card is that it is best to shop around before you sign up. Check out the interest rates on each card to find yourself the best deal, look to see if there are any zero rate introductory offers, but also check what the rate increases to after you have gone past the offer. You are not bound to take out a card from your own bank, so do your research.
Try to Pay off your balance each month
Use your card carefully and keep a note of what you are spending. The best way to get the most out of your card, and avoid excessive interest is to pay off your balance at the end of each month, this stops interest accruing and becoming unmanageable. Ultimately you do not want to be making a payment each month that only does damage to the interest, so watch what you are spending.
Look at the sensible times to use your card
There are definite advantages though to paying for purchases with a credit card. Online purchases of over £100 are protected if you use your credit card under the consumer credit act, this means if your purchase something and it does not arrive, or is not as agreed, or even if the company has gone into liquidation before your item has been despatched, you should be able to get your full refund. (You can find out more about this here.)
Credit Card Consolidation with Wink Capital
If you do happen to have more than one card, or other outstanding debts, then it may be worth looking at just one, low interest, credit card in order to consolidate your debts into one, manageable place. Wink Capital is just one place that offers low interest rates on their card and encourages credit card consolidation. You may find that your card also offers zero percent interest on balance transfers, which is a brilliant way to cut your bill significantly without actually doing anything.
Having outstanding bills and debts in one place is something I would definitely recommend, and also something you can look at every year, so once the interest free period is up, you can look at swapping again.
Credit Cards can be something that makes your life so much easier, you just need to use them sensibly and make them work for you.