However good our intentions, we can find at times that our credit card bill gets really big. Then we might be in a situation where we are not sure how we are going to be able to repay it all. It is therefore best to try hard not to get into this situation in the first place. This means that we need to make sure that we are doing what we can to avoid getting into this situation.
Track your spending
It is really important to make sure that are aware of exactly how much you are spending on the credit card. It can be so easy to get carried away and no really be aware of how much you are spending. It is even easy to not bother to look at the costs of things in the shop when you are buying them and not even the total at the till but just pop in the credit card and pay for it that way. If you do this then you need to change this habit. It is so important to be aware of how much you owe. So, either make a note every time you buy or keep a constant check on the online balance so that you are aware of how much you owe. It can be scary doing this as it is not always nice to look at how much money you need to find, but it should help you to be more careful with your spending if you are aware of how much you already owe.
Calculate what you can afford to repay
It is also worth finding out how much you can afford to repay each month. You may need to calculate this by working out how much money you have coming in each month and how much you pay out and working out what is left. This money left is really all you can afford to spend on the credit card. This is because it is best to pay it all off when the statement comes through. This will allow you to avoid paying interest which means that you will be able to use the credit card for free. If you pay the interest then you will find that it will be pretty expensive and if you keep the loan for a long time, you will end up paying out a lot of money. If you can repay the credit card then you will not have to pay out this extra money.
Repay in full each month
You should therefore aim to repay the credit card in full each month. If you can do this then you will be able to avoid paying any of the interest or other fees. This means that you can use your card to your full advantage by enjoying the interest free period that you get until the statement has to be paid but you will have to start paying interest if you do not repay it in full before the date that interest is due to be charged. It can therefore be wise to set up a direct debit so that interest is never charged. You will be wise to set this up so that the full balance of the card is repaid just after you get paid. Then you will have the money available to pay it. If you keep a good track of your spending, then you should be confident that you will always have enough money available to cover this cost.
Spread expensive purchases
It can be wise as well to not buy lots of expensive purchases on the card all at once. Find out when the card changes from one month’s balance to the next and try to buy expensive items across two months rather than all in the same one. This will mean that you will be more likely to be able to afford to repay it and you will reduce your risk of having to pay interest on what you have bought on the credit card. It may also be wise, if you are buying something really expensive, to put some money by in your savings account. Then you will be able to use this money to pay towards repaying the credit card when you need to.
Pay of bit by bit
If you have a large credit card debt which you cannot repay in one go, then repay it slowly. Try to repay as much as you can though. It is not always made clear by card issuers that it is possible to make repayments at any time. This means that you can put payments in at any time. This will help to reduce the interest that you are charged as you will not owe so much money for so long. So, if you get some spare money then pay it against the card until that outstanding debt is repaid. Then you can work on making sure that you will be able to repay the whole balance each month when you get your statement.