money News
Be simply smart with your credit cards in 2012
Credit Cards are seen by some people in the United Kingdom as a way for immediate access to easy money by providing them with the ability to make all types of purchases. However it’s true to say that although intentions are good there are some people who either forget or simply ignore about the need to pay the money back and often end up with large credit card bills with the continual addition of interest and in some cases charges.
There are also consumers in the United Kingdom who have the “you either have it or you don’t” approach to money.
These kind of consumers just don’t use credit cards and will always pay cash, most often it seems to be the older generation who have been brought up with the attitude that if you can’t afford it then they will not purchase the item(s) and tend to not rely on credit cards as much as the younger generations.
However, to be simply smart with money there are advantages of having a credit card although we are not saying to adopt a “want it now” culture and spend to the maximum a credit card can provide convenience and safety.
Credit Cards are safer than having a wallet or purse full of pound notes on your person.
They may offer “purchase protection insurance” (not to be confused with payment protection insurance) on products purchased.
Strange as it may seem having a credit card will also provide you with a positive credit history if used correctly.
There are some credit card companies who offer extras such as insurance if you are travelling away either on a business trip or for holidays, it is advisable to be simply smart and check the details on your credit card as they may offer some very good deals
Remember that to have these benefits does come at a high price, even though the base rate in the United Kingdom is still at 0.5% – credit card interest rates are high in comparison and they are getting higher on a regular basis. We would suggest that people should see a Credit Card as a Debt Card and thinking hard prior to using a Credit Card to purchase items.
Below are some tips to follow so as not to get into trouble with your Credit Card bills.
Avoid paying your household bills by Credit Card if you find that you are using your card to pay your utility bills/council tax or mortgage then you need to be simply smart with your money and get debt management advice as quickly as possible.
Never withdraw cash using your Credit Card this is a very expensive way to use money, if you have come to this situation then you need to look at your bills such as your household utility bills and see if you can switch to an alternative energy supplier in order to save you money .
If you find you are getting near to exceeding your Credit Card limit then it is time to evaluate your family expenditure don’t just carry on spending – check your budgets and decide whether or not you really need to use the Credit Card for another purchase payment, or indeed whether you really need to make the purchase in the first place.
So as we have mentioned previously there are advantages of a credit card and if you do pay the whole amount every month then good as you’ll be adding points to your credit file, however if you are using your cards to survive then we would suggest that as a priority you need to get some debt advice to help you avoid the pain of the Credit Card spending.