The notion of a credit card is appealing to many, allowing you to make those expensive purchases and spread the cost rather than taking one big financial hit. It’s little wonder that so many people rely on credit cards on a day to day basis.
However, it is important to be careful with your credit card. Of course there’s a risk of fraud or losing your card, but the biggest danger when it comes to a credit card is reckless spending, especially if it’s your first card and novelty of seemingly free and easy spending hasn’t manifested itself into a harsh reality of huge bills and debt.
Here are some handy tips on how to use your credit card responsibly, preventing you from racking up unpaid bills and debt with unsympathetic credit companies.
Check the Interest Rates
When you sign up for a credit card, companies will want to seduce you with seemingly great deals and very low interest rates. If it sounds too good to be true then it probably is. Read all the literature and the small print to get the real scoop; a sudden increase in the interest rate after the first few months could come as a nasty surprise.
Make sure you know exactly what you’re getting into before you sign up for a credit card, and shop around too; it’s wise to see who will offer you the best deal.
Always Make Payments on Time
Ensure that you make your credit card payments on time, every time. Credit firms will not be sympathetic to excuses for late payments, and they’re very fond of applying fees and increased interest rates to delayed payments, so watch out for this.
Don’t Use a Credit Card for Everyday Purchases
You credit card is not a substitute for cash or a debit card, and using it in this way is an extremely bad habit that can quickly spiral into a nasty debt situation. Food, petrol, clothing, these are purchases that are best made with cash rather than your credit card.
Our advice is to leave the credit card at home when you’re doing a routine shop. Save it for emergencies or the occasional special purchase. Frivolous use of a credit card is a one-way ticket to debt.
If you’ve incurred debt through use of credit cards or other means and require competent and impartial debt advice in Scotland, then we are here to help you. Contact us today or call on 0800 011 2322 to speak with one of our advisors; the help that you need could just be one phone call away.