Credit cards and online shopping can be a dangerous mix, but utilising your line of credit properly can make your finances run much more smoothly.
New users often get carried away, racking up debts that they subsequently can’t afford to pay back on time.
Read on for our five top tips to avoid credit card debt.
Avoid buying things you can’t afford
It might be tempting to splash out on the latest plasma screen television, but can you really afford the item?
Every household should be working to a financial budget, so make sure you can comfortably make the repayments on anything you purchase.
Taking advantage of online offers such as the VonBets Bonus Code 2018 could help build your budget, giving you the opportunity to pay for your dream purchase in cash.
Don’t miss credit card payments
Always try and pay your credit card bill in full and on time. If you’re unable to clear the full balance, make sure you at least cover the minimum payment needed to ensure you avoid any additional charges.
If you struggle to remember due dates, set a reminder in your phone before the deadline to make sure you steer clear of credit card debt.
Cash advances are expensive
Withdrawing cash on your credit card can be a costly business, so avoid doing this unless it’s a totally unavoidable emergency.
When a cash advance transaction is made using a credit card, the majority of providers will charge around 3% of the balance withdrawn and start charging interest, usually at a 20% to 30% p.a. variable rate.
This is invariably higher than the purchases rate and there’s rarely a standard interest-free period like the one offered on purchases.
Stick to one card
It might be tempting to have numerous lines of credit, but this practice is fraught with danger.
Different companies may lure you into taking out their credit cards on the back of your good credit history, but resist the temptation at all costs.
Sticking to one card will help you keep a tight grip on your finances and help you steer clear of money troubles.
Don’t lend your credit to someone else
Offering family or friends the opportunity to use your credit card should be avoided at all costs.
No matter how much you think you can trust someone, it’s always inadvisable when it comes to allowing them access to your line of credit.
If the individual is financially trustworthy there’s no reason why they couldn’t have a card of their own, negating their need to borrow from you.