Getting yourself into serious credit card debt is so easy to do and every year thousands of people in the UK run into financial difficulty because of excessive spending on their plastic. Credit card debt can affect anyone from single mother to rock star to successful businessman and it is estimated that out of the 60 million or so credit cards in circulation in the UK, 70% still have an outstanding balance on them. In addition, it is thought that around 5% of people in the UK have put mortgage or rent payments on their credit card in the last year. So what can be done to avoid getting yourself into a credit card mess? Here are some tips: Live within your means Tip number one seems obvious but debt problems normally start when an individual increases their expenses every month without doing... »
With numerous credit card companies out there offering their services it can often be confusing as to which company to choose and why. Here are some useful pieces of information with which to keep yourself informed.
If you decide to use a card to buy goods or services use this list to decide which one is best for you. There are hundreds of cards available but most fall into one of these categories. To add further confusion you’ll find that card issuers offer gold, platinum and ordinary cards – these are the same types of cards with different conditions and benefits. Debit cards These take money directly from your bank account, they’re not credit cards but an alternative to cash or writing a cheque. Linked to your bank account, debit cards often also work in cash machines and as a cheque guarantee card. Switch and Visa operate these schemes for the banks. Charge cards If you use a charge card you’ll be sent a bill each month which you usually have to pay in full – so again... »
Using a credit card, instant credit in a shop, catalogue shopping, using a store card – when it comes down to it you’re borrowing money. If you’re going to use credit these ten tips will help you to borrow safely. Prepare yourself Can you afford it? Before you commit yourself make sure you can really afford the repayments – don’t be talked into borrowing more than you want to. Shop around for credit. The first thing you’re offered may not be the best deal. There are many types of credit and numerous rates on bank loans, credit cards, hire purchase agreements and so on. Don’t pay more than you need to. Read the forms before you sign. If you don’t understand them get help from a trading standards office or Citizens’ Advice Bureau. Once yo... »