How to Pay Dreaded Credit Card Bills ?

Here are a few things you can do to help lessen the burden of that dreaded credit card bill.

Pay Credit Card Bills
If you have made use of some great (or not so great!) credit card deals, you may be considering a range of options when it comes to paying off the money you have borrowed. The first time that you get a credit card and have the opportunity to go shopping or pay bills without draining your bank balance can be overwhelming. If the credit card you signed up for came with a good offer, such as ‘6 months interest free’, or ‘Nothing to pay until next year!’, the temptation to run up a large balance on the
card may have been too great to resist. However, when the offer runs out, you can experience problems repaying the debt.

Here are a few things you can do to help lessen the burden of that dreaded credit card bill:

1) During the offer, make sure you pay as much money off as you can, so that when the offer finishes, you won't be left with a hefty bill and lots of interest to pay each month.

2) Think about transferring your balance to another credit card. Make sure that your new card offers you 0% interest on transfers for at least six months. Remember that there is likely to be a transfer fee, which is usually between 2% and 5%. You may also want to take a look at the minimum monthly fee too, although you should ideally pay a little more than the minimum if you can. Try not to use your card in the meantime, unless it is really necessary, as you are likely to be charged interest.

3) Make sure you know when your 0% interest period is about to run out on your new card, so you can start looking for another great deal. Some people transfer balances every 6-12 months because even though they are charged a transfer fee, regularly transferring the balance works out cheaper than paying 20% interest every month. The most important thing to do after you have transferred your balance is to cut up your old card and close your account.

4) Paying off the minimum amount each month may seem ideal as it means you’re left with more money to spend elsewhere. Usually, £5 or 20% of your total balance, whichever is greater, is roughly what credit card companies ask for as a minimum payment. But if all you ever do is pay the minimum amount off each month, you could find yourself paying so much more than you thought you would. Each year you will be charged a specific amount of interest; the longer you have a credit card, the more interest you will pay. Therefore, it makes perfect sense to pay off as much money as you can each and every month.

5) Some people are so determined to pay off their credit card bill that they do a few extra hours at work each week. While this option may not seem ideal to you, those few hours will add up over a month, and you may be able to pay off your balance quicker than you thought.

6) You may also want to think about how much you spend each month. Take a look at your income and expenditure: are you able to make a few cuts somewhere so you can pay your credit card with the cash instead? Even if you are only able to pay an extra £5 off your credit card, even this small amount will help to reduce fees and interest. However, the more you can pay off, the better it will be for you in the long term. Make sure you don’t set up a direct debit for the larger payment if you are not sure that you will always be able to meet the payment, as you could be charged hefty bank charges.

Credit card deals are great, but once they have run out, working out how to pay the remaining balance off can be difficult, and it could end up costing more than you think. Do what you can to pay off as much as you can each month, even if it means you have to fill in forms to transfer your balance every six months, as doing so could save you hundreds of pounds a year.

Submitted by : This article is contributed by Laura Ginn, who understands that applying for a credit card is easy and that keeping on top of your payments and paying off the debt is the hard part. When looking for the best credit card deals you can find credit card advice on uSwitch that will help you find that deal for you.

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