Credit card debt accounts for a huge percentage of personal debt problems amongst women. It's so easy to fund your lifestyle with plastic but when it comes to clearing the credit card debt, it becomes a whole lot harder.
Credit cards are easy to come by and unsolicited offers come through the mail regularly. But before you take up that offer that seems too good to refuse, you should ask yourself a tough question: can you trust yourself?
If you have a history of credit card debt and overspending then it might be best if you resist temptation in case it happens again.
However, if you are convinced that you can handle a credit card without getting carried away there are still some rules you should follow.
The first is to get the best interest rate you can. There are literally thousands of credit cards on offer so you have your work cut out. The internet, as ever, is a good source of information. Search for sites offering comparisons and bear in mind that the big names don't always offer the best deals.
Once you have made your choice, you should endeavour to use your card in the right manner. There's no doubt that it is best to pay off the balance on every bill you receive to avoid paying excessive interest.
Don't kid yourself by thinking that you are managing your credit card debt just by paying the minimum payment every month. You simply won't clear the debt this way and you are just prolonging the agony. Of course, missing payments is even worse because then you can get hit by penalty charges.
Maybe you won't always be able to pay off the balance at the end of the month and every woman has the right to spoil herself now and again. Therefore, it makes sense to keep a close eye on the interest rate your card charges.
Don't be afraid to switch to another card that offers a more competitive interest rate and take note of any offers of a low introductory rate, sometimes 0%. And once that introductory period expires, you can switch again to a similar offer.
When it comes to store cards, one piece of advice endures: don't. Store cards tend to charge excessive interest rates which far exceed those of ordinary credit cards. Sometimes there are the incentives of discounts or gifts and if you are intent on taking advantage of these, why not cut up the cards after paying off the balance to avoid temptation?
Of course, vowing to stay on the straight and narrow is infinitely easier than actually doing it. So if you do run into trouble, make sure you get professional advice on your credit card debt. Don't wait until your problems get out of hand – the sooner you take action, the less painful it will be to remedy the situation.
But there's no need to let your credit cards control you – if you stay sensible, you can make them work for you.
John Porter is a professional debt counsellor, providing free debt advice, and has worked in the debt help industry for more than 20 years. He is a senior counsellor with The Debt Counsellors. For more information see http://www.debtcounsellors.co.uk/
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