Get to know yourself and your spending habits- then choose a card that’s appropriate to you. A low APR is irrelevant if you are going to pay off the balance in full each month. See ‘How Do You Use Yours’ for more details.
Set up a monthly direct debit to pay off at least the minimum repayment on your debt- thus avoiding late payment charges.
If the debt is bearing interest, pay off as much as you can as quickly as you can- or look for a good balance transfer deal.
If taking advantage of a 0% period on a card, keep big, clear note on your calendar when the period ends. Act before it does.
If you’ve transferred your debt to a new card, don’t use this card for purchases. Any repayments made will be offset against the 0% balance first, leaving the new purchase balances to rack up interest.
Keep it simple- too many cards to juggle and you will end up missing payment dates and the end of 0% periods. One or two major cards should be enough for most households.
Avoid fraud by following sensible basic rules:
Protect your card and the information contained on it from potential fraudsters, both physical and online.
Check statements promptly to make sure you understand all the entries- query those you don’t with the card issuer.
Destroy documents with your card number on them. Spending £20 on a home shredder might be the best investment you ever make.
Check you card’s terms and conditions carefully before using it abroad- extra fees and charges may well apply.
Don’t use a credit card to withdraw cash from cashpoints. It’s always more expensive than using the standard cash withdrawal card issued with your account.
A credit card is not a magic solution to any overall financial problems you may have. It may be convenient to purchase items sooner and quicker than if you had to pay by cash or cheque, but you should not be spending on things you would not be able to afford at all otherwise. Make servicing and paying off your credit card debt an integral part of your overall household budgeting.