Credit card debt

The last decade there has been an enormous increase in the amount of credit card debt in the UK with the figure set to move higher in the short to medium term. This is the easiest debt trap to fall into as finance has been so easy to obtain even for those on a particularly small income. The main problem with credit cards is the fact that they are very easy to use and in a very short space of time you can lose track of how much money you have actually spent.

While the standard payment terms require you to pay between 3% and 5% of your balance at the end of each month even this will see your balance and interest charges build up over the weeks, months and years. Many people start using a credit card at a very early age and before they know where they are they have substantial debts and even 0% transfer offers do not do the trick. In order to take control of your credit card debt you need to pay off as much as you can each month, spend as little as you can each month and ensure that your card is not available 24 hours a day seven days a week.

There will be times when you need your credit card for an emergency but do not kid yourself that you need to take your credit card with you every day, even when you have a debit card which you can use. A credit card is not a license to spend money you have not got because very quickly your debts will spiral out of control and the credit card companies may not be as understanding as you might have hoped!

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