Credit Cards: How To Use Them
Credit cards can be a very quick way of getting into even more debt if you do not know how to use them properly. UK debt is now at an all time high and, excluding mortgages, Credit Cards are one of the main contributors.
It's a lot easier to get a credit card than it is to get a mortgage or a loan. So it makes sense that more people own a credit card. With interest rates that are quite high in relation to loans and mortgages you can see why the debt can get out of hand.
In order to get the best value for money out of your credit card you need to be disciplined in the way you manage your debt.
Make sure you make the payments every month:
If you cannot pay off the whole amount every month make sure you pay at least more than the minimum required. This will help you pay more of the capital off every month. Make sure you take advantage of the interest free periods in this case.
Don't abuse your credit limit:
A credit limit does not mean free money. Credit Card companies are happy to raise your limit if they see you pay off your card regularly. Don't be tempted to use this money it just puts you further in debt and will take you longer to clear it. Credit Card companies know that most people will not be able to resist spending more and you are just helping the big card companies to make more money.
Check your statements every month:
This is a small but important point. Credit Card companies are not perfect and often errors are made on your statements. Make sure all items on your statements are goods and services you have purchased. If you do notice an error contact your credit card straight away. Keep an eye on the interest rate you are charged. If you are on an interest free period make sure you are still not being charged interest.
Know your rights:
Many people do not know their rights when it comes to using their credit cards. Did you know that if you buy goods or services and these are not delivered or are not to the standard advertised then the Credit Card is liable. If you order a sofa and the furniture store goes under and you do not receive your sofa then the Credit Card company has to reimburse you the amount spent. A little tip: If you are paying for an item and it is to be delivered at a future date, always use your credit card as it will be a form of insurance if there is a problem. You can always pay the amount off when the goods arrive if you had planned to pay cash.
For more information on your rights visit:
http://www.dti.gov.uk/ccp/topics1/consumer_finance.htm
Grant Marwick is a freelance writer and owner of http://www.only-credit-cards.co.uk where you will find advice and more articles on Low interest Credit Cards and advice on Bad Credit
MORE RESOURCES:
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 AFP | Tighter credit card limits add to woes MiamiHerald.com, FL - Now credit cards may become the next focus of the credit crisis. BY FRED TASKER Maria Osorio, 62, of Sunrise, never meant to run up her credit cards the way ... Credit Crisis Collapse What Happens Next? Regional financial experts focus on lending; say credit crunch is ... Market news this week for strong stomachs |
 Boston Globe | Global leaders seek answer to credit crisis San Francisco Chronicle, USA - At the same time, loan markets everywhere remained broken, especially the critical wholesale credit markets, in which financial institutions lend each other ... Video: Bernanke: More Economic Pain Ahead TREASURIES-Surge in Europe as shares skid on credit woes Stocks down despite government moves to free up credit |
 The Associated Press | US will work with partners on credit crisis: Bush CBC.ca, Canada - It was the 21st time in 26 days that the president has spoken publicly about the credit crisis gripping financial markets and dragging down stock markets. ... Meeting G7, Bush Vows World Economic Fix |
Lehman Credit-Default Swap Payout Could Climb as High as $365 Billion Washington Post, United States - By Heather Landy NEW YORK, Oct. 10 -- In what may shape up to be the most expensive payout ever in the credit-default swap market, sellers of insurance ... STOP FINANCIAL WMD'S: Credit Default Swaps Insurance on Lehman Debt Is the Industry’s Next Test Lehman Credit-Swap Auction Sets Payout of 91.38 Cents (Update1) |
Is my credit union safe? Los Angeles Times, CA - By E. Scott Reckard, Los Angeles Times Staff Writer The government-run National Credit Union Share Insurance Fund insures most deposits at credit unions, ... Got Your Money in a Credit Union? You Too Are Safe In tumultuous financial times, credit unions might be an option to ... LETTER: Your money is safe with credit unions |
Fears Grow That Tight Credit Could Crush GM, Ford NPR - Standard & Poor's downgraded the credit of both companies and their financing arms this week. AFP/Getty Images Ford F-150 trucks sit at a dealership in ... Video: Money Minute: GM, GE, Oil GM, Ford too big to fail? CREDIT WATCH HITS GM, FORD |
Financial troubles spread to credit unions Los Angeles Times, CA - By E. Scott Reckard, Los Angeles Times Staff Writer It's not just giant banks on the brink these days: Losses are clobbering nonprofit credit unions that ... |
 New York Times | Credit cards, credit crunch: consumers feel pinch as issuers `go ... Newsday, NY - The credit crunch and weak economy also are taking a toll on credit cards. Perhaps you have noticed that you're receiving fewer offers for credit cards in ... Your Money One Thing You Can Control: Your Credit Score |
 Boston Globe | Transcript: President Bush's Radio Address FOXNews - The Fed has joined with central banks around the world to coordinate a cut in interest rates — a step that should help free up credit. ... Text of Bush's remarks Friday on the economy Comprehensive strategy to tame crisis: Bush Bush says financial rescue plan big enough to work |
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