How to use your credit card and credit wisely
By Mr Bankruptcy
22nd March 2023
Credit cards can be a debt burden for many people but, when used wisely, they can be a useful borrowing resource without your debt growing out of control.
These top tips will help you to use your credit card well while keeping control of the money you spend on them.
Steps for managing your credit card usage
The challenge with credit cards is that it can be very easy to incur additional charges on top of what you’ve already spent. Avoiding these costs is important for managing your credit card well so that you never have to pay back more than you borrowed. Here’s how to avoid unnecessary costs:
- Pay the balance of your credit card off each month to avoid interest charges on any outstanding balance.
- Avoid late payment fees by paying off your credit card bill on time each month. Set up a monthly direct debit payment that allows time for the payment to be processed so that repayment is automatic. Regular late payments can also see your interest rate rise.
- Don’t go over your credit limit, or you may be charged for the service.
- Don’t use credit cards for cash withdrawals as you are likely to have to pay a fee and higher interest rate.
- Be cautious about choosing to pay only the minimum payment each month; this could cost you more in interest payments in the long term. It also means you’ll be paying more than the original debt and you will see your debt gradually accumulate.
- Put a credit limit on your card that you feel is manageable for you to repay. Don’t get tempted to overspend by accepting offers of higher credit limits.
Apart from managing the way you pay your credit card, you also need to ensure that you keep your PIN secure, you check your bills regularly and you only use your card online, on secure websites, to avoid your card being cloned or used for fraud.
What if your credit card debt becomes unmanageable?
If you card debts are worrying you, it’s important not to ignore them, but also not to panic.
It can be tempting to look for other credit options to pay your credit card, and balance transfer to another card with 0% interest may be an option, but getting into more debt to pay off older debts can see your problems quickly spiral.
Get in touch with your credit card provider as soon as you realise your debt is becoming unmanageable. They will be able to explain all the options available to get you back in control, reduce your debt and help you to get back on track with using your credit card wisely.
James Rosa Associates
James Rosa Associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, our aim is to help people. We offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.