If you don’t have any credit card debt at the moment, you’re most definitely in the minority, particularly in the United Kingdom. It is well documented that most of us have at least one credit card in our wallets, some of us significantly more. I know I have 4 personally and a couple of store cards to boot also! I don’t worry about it too much as I know that even though I have quite an array of cards, all of them are on interest free arrangements and although of them don’t really carry a significant balance. They’re certainly nothing to worry about anyway. Unfortunately though, there are some people out there who have credit card debt that is simply spiraling out of control and the funds that are being paid towards the cards each month are simply not making a dent in the overall balance. This is something that most definitely needs to be addressed should you find yourself in this situation.
When it comes to debt management, particularly credit card debt, the key is in the interest. More to the point, paying as little of it as possible. Whilst I personally have a fair amount of credit cards I make sure that whatever the balance, I am paying the least amount of interest possible. This is what you need to do also and should be the first step towards making your credit cards more manageable and eventually getting yourself out of debt.
Getting an interest free credit card, particularly if you have a good credit rating is quite an easy task. Most companies offer introductory offers where you can move your current balance (balance transfer) onto their cards and enjoy an interest free period for up to a year in most cases. This way the money you pay towards your card each month is actually going to be going off the card balance and not just paying the interest.
There are numerous debt solutions when it comes to credit cards. Switching to a lower interest card is just one of them. If you seek advice from a third party debt management firm they may also suggestion the option of consolidating all of your debt into a single loan with a single monthly payment.
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20 Aug, 2009