How to Avoid a Huge Credit Card Bill

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.

Ways to Earn a bit Extra

Often it can useful to earn a bit more money than we are already. This could be because we want to avoid having to borrow money, want to repay a no credit check loan, build up savings or buy more things. However, many people do not know how they could earn extra money. It is easy for others to suggest they get a pay rise or change to a better paid job, but this is not possible for many people. There are other things though, that they will be able to do.

Sell things

It can be fairly easy to make a big sum of money if you sell items that you already own that you no longer need. This could be clothes that do not fit, toys your children no longer play with, home ware that you do not like or things like this. If we have a sort out it is possible for many of us to find some things that we could sell which would make some money. It is good to make sure that we are selling them in the right place to make the most money. So do some research about the types of places that you could use to sell the items and this should help you to be able to make the right choice. You should consider selling online or offline, depending on whether you feel there will be a better local market for your items. It can also tend to be more expensive to sell online and so you will need to consider this when you are selecting a place to sell. An advantage of selling things that you previously owned is that you will not pay any tax on the money that you make. If you buy things to sell on, then you will pay tax on it.

Start a business

Some people choose to start a business to make extra money. You will need to check with your current employer as some will not allow this to happen or it may need to be something which is significantly different to what you do for your job. Starting a business can take a lot of work, so you will need to be prepared to commit a lot of time to it. Some businesses will also cost a lot of money and this can be a problem if the point of starting it is to make money. There are businesses that can cos minimal amounts or even nothing to set up and so starting something like this could be better. This is because all businesses are a risk and there is a chance that they will not make money and if you put a lot of money into them you may never be able to get it back again.

Do freelance work

Freelance work can be a good way to get some extra money in but still be flexible. You just do odd bits of work whenever you choose and this means that you can avoid times when you know that you will be busy doing other things. You will again have to check with your employer as to whether you can do this, in the same way that you will if you want to start a business. You may need to find your customers or you may be able to find work through an agency.

Do some temping

Temping can be an easy way to pick up some extra work. You will be able to sign up with an agency and they will get in touch with you when they have work that you can do. You will be able to let them know what sorts of things you want to do or pick an agency that specifically deals with the work that you want. You can pick work that fits around your current job and your lifestyle.

Do some online work

Online work can be tricky. There are lots of companies offering work, but some of them are not genuine. This means that you might do work and not get paid or even be told that you have to pay out money before you can work. These are all best to avoid if you can spot them. There are genuine opportunities available though, particularly if you have specific skills that people want. Things like writing copy for websites, designing websites and programming them can all be in high demand. The only drawback is that you will be competing with people all over the world. Therefore, you will need to make sure that you have a skill that stands out. You may also need to be prepared to take a low rate of pay as there will be some workers form countries with much lower standards of living that will do the same job as you for a lot less money.