Credit cards are an incredibly useful way to make emergency purchases or pay for high-cost items without needing to put them on lay-by or take out personal loans. However, when your credit card debt starts racking up, it can become difficult to control, and you might start falling behind on payments.
This not only looks bad on your credit report, but it could leave you with crippling debt. Always make sure you have the best credit card offers available to you. If you’re struggling with debt right now, check out the three tips below:
Three Tips to Help with your Credit Card Debt
1. Cut down on food and utilities expenses
Saving money doesn’t have to be hard. Small changes to your lifestyle can make a big difference to your bank account, so find ways you can cut down on your expenses, and you can increase the amount you put aside to make repayments on your debts.
Check out competitive utilities companies as well, and make use of any deals on offer. A water company might charge less per litre used, and normally have a high set-up fee, but keep an ear to the ground for any special offers.One way to save is to review your monthly food shop, and take note of how much you waste, or how much you spend on big brands. Buy a store brand instead of a ‘designer’ food brand, and you could save a lot of money in a single shop.
2. Transfer the balance of your credit cards
Multiple credit card accounts can be much more difficult to manage than just one. You could have three medium-sized debts all accruing interest separately, and you’ll need to make three separate minimum monthly repayments to ensure you aren’t penalised.
Combine them into one account and you will have the same total, but in one place, accruing only one round of interest. Look out for transfer fees before you decide to go down this path, though.
3. Make extra repayments as much as possible
The least you should do when paying off credit card debts is make the minimum monthly repayments, but where possible, you should do more. It might be a particularly easy month to save (i.e. not around Christmas time or any big birthdays), so your expenses will be less. You can save more, and use that money to get rid of an extra bit of your debt. Anything extra that you pay off means you’ll have a lower total accruing interest, which will save you money in the long run.
For more information about paying off credit card debts, make sure you get in touch with BOQ today.