Tips to Take Control of Your Credit Card Debts

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With the recent financial issues and economic downturn affecting millions of residents throughout the UK, disposable income is at a record low. This unfortunately leads to an increase in the use of credit cards and the debts that come with it. Being in debt can be one of the most worrying and stressful things that can happen to you and would keep even the soundest of sleepers awake at night so beginning to manage your credit card debts is the first step towards financial freedom.

Credit cards are tempting for many obvious reasons. Their readily available, they are more convenient than paper cash and when your cash flow is running low they can be used to cover all your outgoings. However, the interest rates they carry can be huge and in some cases can be difficult to pay off.

So here’s a useful guide filled with hints and tips to ensure you can organise your finances efficiently and pro-actively.

Budget 

Having a clear understanding of where your money is going is the first step towards getting out of debt. Make a budget and record all your monthly incomings and outgoings. This will give you a clear indication of where you can make the necessary changes and cut back. Another good idea is to, if possible, cease using your cards completely and pay for all your ‘over-the-counter’ transactions with cash. This removes the urge to use your cards and allows you to live within your means.

You should also assess the importance of each transaction. Make sure that necessities are paid for first and any additional income available be used to pay off your debts. At times like this you need to live within your means so treats like nights out, buying magazines, CD’s etc. should be minimalized. 

Try to consolidate your debts 

More often than not, those with credit card debts have them spread amongst many different cards. This can make it difficult to pay off, especially when money is tight. It’s advised to pay off each card one by one, going from biggest to smallest. If you don’t feel this is right for you however, you could try and consolidate your whole debt onto one card. This allows you to pay it off each month without the worry of multiple debts.

If you decide to move all your debts onto one card, try to put them onto an interest free credit card. These tend to be interest free for a limited period e.g. first six months, twelve months etc. so depending on the size of your debt, you may be able to pay it off before the interest starts.

Being in debt can be an extremely lonely experience, so take as much advice as you can. Contact the CCCS (http://www.cccs.co.uk/), they will be able to provide useful information and may be able to help you temporarily freeze your debts or move them into one individual debt.

Bio: This article was provided by Debt Free Me, the UK’S leading debt management and advice experts.