Stay on top of your Credit card payments and avoid debt.
Make room in your budget
When setting out your monthly budget make sure you set a plan for your credit card payments so you aren’t caught out. You can do this by downloading a budgeting app to help you or you can use other methods to budget that work for you.
Having a budget will help you stay in control of your finances and allow you the freedom to spend where necessary without worrying how you will afford the necessities. Paying your credit card off should be a top priority so you don’t get hit with any extra fees.
Set payment reminders or direct debits
When you know you have something to pay back make sure you set yourself a reminder or even better, schedule a direct debit. This will set it out of mind and you’ll know it is taken care of.
This will ensure you pay on time and you can even use it to remind yourself how much is needed in your bank account.
Always try to pay the full amount on time
Paying in full whenever possible is the most beneficial way to do it. If you leave a balance of any amount this will cost you interest and increase your credit utilisation score and ultimately affect your credit score.
Leaving a balance on there also accumulates into credit card debt and this can be a dangerous way to go as it is easy to let that build up. This is why it is important to be aware of all the information before getting a credit card.
Reduce your credit card limit
If you are finding yourself relying too much on your credit card and spending too much then it may be time to reduce your limit. This is a smart way to cut back on spending and reduce the risk of debt.
A credit card limit is the maximum you have to spend using your credit card, this could be £3000, but it would be wise to stay below your limit as you will have to pay it all back at the end of the month. The bank will decide how high your limit is based off of your credit score and finances.
You can change your limit by calling your bank or by visiting them and they should be able to change this within a couple of days.
Cut back on your credit cards
If you have multiple credit cards you could be allowing yourself too much temptation to spend. If you are struggling to stay on top of your payments then it could be a good idea to cut back and only have one card so you only have one card to repay.
Having more than one may seem like financial freedom however this can easily lead to high debts and out of control finances that could be hard to bring back.
Staying on top of your credit card payments can become difficult, if you needs support make sure to talk to your bank.
