How to Get the Best Credit Card Deal and
Eliminate Credit Card Debt -
Free
Here are some ideas to help you reduce your credit card
debt and get
the most out of
interest free balance transfers, etc..
If you can afford to, make sure you pay off all or as much as you can from your credit card balance
at the end of each month. If you do you'll avoid wasting hundreds and
even thousands in interest payments each year and you won't get a
credit card debt reduction.
Cut up all of your credit cards bar one. Then make that card
difficult to use, so you will be put off the idea of buying on credit.
You could put the card in the attic, then you would need to climb a
ladder to get to it, stopping you from making a spur of the moment
purchase.
Make payments to your account in time, otherwise you will be
penalized with increased interest or penalty charges.
Make sure you check around for the best credit card rate. Seeing as the
annual percentage rate (APR) often changes after an initial period it
is a good idea to change credit cards frequently.
Try to avoid using the credit card as much as possible. If you don't
normally pay off the CC bill every month, remember that the purchase is
costing you more because you're putting it on your card.
If you have a lot of debt on your credit card and the interest rate is
causing you problems you can always
switch the debt to a 0 percent balance transfer credit card. This will
give you 6 to 9 months of interest free time to repay the loan. What
you must not do is spend on this card as the 0% balance transfer only
applies to the transfer and not new spending. As the bank credit card
makes all it's money from your spending on the card you can assume that
this part of the deal won't be very good. There are more than 60 UK
credit card that offer zero percent balance transfers, so the
opportunity is there to keep jumping from one to another (as long as
you keep accurate records of when the 0% offer is up).
Save up for things you really want instead of reaching for the card.
This way not only will you save money, you will also avoid buying
things you don't really need of want and you will enjoy a sense of
achievement when you finally make your purchase.
Try to only use
your credit cards for real emergencies. A new piece of clothing or an
album definitely aren't emergencies. For instance, if you need to get
the car repaired and you don't have the money.
Contact your credit
card companies to ask if they will do you a better deal to stop you
from switching to another card. You never know you may be offered a
better deal and not have to bother to apply for a credit card from
another company.
Don't take the banks credit card insurance as it
is filled with loop-holes in order to save them from paying up in the
event of a claim. As such it is also very profitable for them,
insurance from a independent company will probably be cheaper and will
be more likely to pay out in the event of a claim.
Avoid the
temptation to take cash out on your credit card. The interest rate for
cash advances can be much higher and you will be accruing interest
straight away.
Check your monthly statements very carefully. Watch
out for hidden charges, such as credit insurance or incorrect items
billed to your card.
It might work out cheaper to get a home equity
loan to consolidate credit card balances. Home equity loans normally
offer lower interest rates and are usually tax deductible.
Lots of credit searches on your credit file in a short space of time
can have a negative effect on your credit rating. This is because it
may give future lenders the impression that you are in financial
difficulty and desperately searching around for credit. However
applying for one or two more cards in a short space of time should not
have too much of an effect.
If you always fully pay off your statement every month you could use the
cashback schemes that some companies offer. This way you will get a little discount on everything you buy. These cards won't have the most competitive interest rate, so it is best if you use an automated payment method (Direct Debit) for this card or you will wipe out the cashback advantage.
