Repaying your Credit Card Debt

Although having a credit card is one of the quickest ways to borrow money, and by using one wisely you could end up borrowing money for next to nothing, plus you will be able to get extra-added protection on your purchases as well as rewards when using your card for flying or making your everyday purchases.

But beware for those that are not able to use credit cards wisely as you could end up paying huge amounts of interest and quickly rack up debt you never intended to in the first place.

Credit Cards are also great for consolidating debt if you are planning to put your Debt Consolidation in one basket. Running up debt is really easy but managed with care and caution; your credit card could prove to be an invaluable asset.

There are definite pros and cons to using credit cards:

  • Did you know that certain credit cards offer a 0% period of interest which could mean that you can effectively benefit from an interest-free loan?
  • Obviously your balance needs to be at a nil balance in order for you to qualify for this really great benefit but you need to get to this balance before the offer expires.
  • Always look at ways at paying off credit card debt before interest rates kick in as interest rates on personal loans and credit cards can prove to be very high.
  • Paying your credit card debt in full each and every month is advantageous in that you are in effect borrowing for “free”.
  • It might be a good idea to set up a debit order to take care of credit card debt first and foremost every month.
  • Why not consider making all your purchases on your credit card every month, including groceries and fuel, then pay your credit card off in full – it is a brilliant way to conduct your spending.
  • Paying your entire credit card off before you need to settle the bill could be brilliant for cash flow.
  • Making money from your credit card is another bright option – this comes in the form of earning voyager miles, as well as earning cash back points. A great example is earning eBucks for FNB credit card clients.

It is always important to bear uppermost in mind that having a credit card is another form of borrowing – therefore remember that you could get yourself into debt if you get carried away when owning one. Buying now and paying later is not for everyone and especially for those individuals not good at managing their debt well.

Not paying your Credit Cards back in full every month means that you will soon find that you risk accumulating interest and debt and this could quickly become uncontrollable; this is especially pertinent should you only pay the minimum amount required each and every month.