While a credit card can often be something that saves the day, they can be a very costly item and end in tears, especially if you have one for those with poor credit ratings and a very high rate of interest. I do have one, but when I do use it, which is not often, I make sure I pay the whole amount off when the statement arrives. Never Pay just the Minimum Payment…Your credit card company usually makes sure you know that there is a minimum payment. Even if you owe thousands of pounds, your minimum payment can seem extremely low, however, what the credit card companies don’t tell you is that if you have a large balance and only pay the minimum payment for the next few years you will cost yourself possibly thousands of pounds in interest costs alone.
If you can ~Transfer Your Balance to a Lower Interest Credit Card
Many people with a poor credit rating , possibly due to unemployment , debts etc , do not have a credit card at all and cannot get one, but some do manage to get one, albeit with a very high interest rate , but it is the only type of card they can get, and they cannot switch to a better offer . However, IF you can, it is possible to find some attractive interest rates. Some card offers allow you to transfer your higher rate card to the better offer and give you a very good interest rate, even lower than normal for a certain time when you sign up. If you are paying loads of money in interest each year it can be much better to switch and get a good offer for a time.
Do the same with your utility contracts, again the problem is that many who most need to switch and get a good offer cannot do so because they are have black marks on their credit record and so cannot pass a credit check to switch, also many people on a very low income, e.g. benefits are on pre-pay meters for gas and electricity and cannot switch while they are still paying a debt off. Another known problem with pre-pay meters is that it is known that gas and electricity paid this way is much more expensive but that this method pf payment is often forced on those least able to pay it. If you can switch your utility contracts the keep an eye out on e.g. price comparison sites for better offers.
And …Use a Debit Card Instead of a Credit Card
There are certainly times when IF you have one, a credit card can be a necessity, such as after Christmas, but especially if you have a high interest one, why use something that is so expensive when we don’t need to. Rather, pay with our debit card and not pay any interest. Debit cards are usually accepted everywhere credit is as well. Use your debit card to avoid high interest fees in the long run and you can literally save hundreds in interest fees each year.
Also, why not make a belated New Year Resolution and look ahead at your budgeting ….Counting any money still due to you in January and in December before Christmas arrives, there are twelve months until Christmas, even if you only managed to put away £10 per month , this would be £120 for Christmas , to at least buy some food and presents ….
Valerie Hartland
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