They’re not for everyone, and if you’re a bit of a spendthrift, you’re probably going to find yourself in some difficulties in future. With the ongoing credit crunch having lead to an increase in overall debt levels, many who are struggling to make ends meet are now turning to debt consolidation firms for help and taking out an IVA in order to help manage their debt levels.
The common misconception with credit cards is that it they offer access to ‘free money’. Indeed, the majority of credit card debt is likely to be the result of those who are not so careful with their financial planning. Using the card for cash withdrawals at cash machines can also rack up high fees on your bill. Most issuers will usually charge these fees, even though there may be an interest-free offer on the account – this will usually apply to purchases only.
However, it’s not just at home where difficulties with credit card fees can affect your debt. Depending on the type of card you have, using your card abroad can be a risky business, and it’s essential to ensure that your card is eligible to be used abroad before you jet off on your holidays.
If you have accumulated a large balance on your credit card, the best advice is to try and get it paid off as soon as possible. For those who make the minimum payments each month, the interest can soon pile up and add more to your debt. By paying off as little as 1% over the minimum monthly repayments, you can help yourself to shave off a little of your accumulated balance and give yourself a much needed boost in your quest to rid yourself of your credit card debt.