Cut credit card debt -How can you achieve it
The rule to manage your credit card debt effectively is to always pay on time. When you can, pay more than the minimum payment. Millions of UK credit card holders are charged at least once a year for missed payments, according to research by Confused.com.
Setting up a direct debit is the easiest way to avoid racking up missed payment charges. This can be done in minutes if you bank online or by phone. But that’s the easy part. You also need to be sure that you have enough money in your account to cover payment when it’s due, otherwise you could incur charges from both the credit card company and your bank. Missed payments also affect your credit rating.
Try and set up the direct debit so that it is made on the same day you are paid and keep an eye on how much is in your bank. If it looks like you are not going to be able to cover the payment get some fast money into your account.
A fast payday loan can help avoid credit card charges
Not covering the credit card payment could led to charges from your bank as well as the credit card company and drag down your credit rating.
If you take a payday loan for £80 you pay back £100 on your payday, or for £160 you pay back £200.
See our payday loan charges table to see how the cost of a fast loan compares with the price of paying for credit card charges. Used smartly, a fast payday loan can prevent credit card charges and bank fees getting the better of you.
Always make sure you pay off your loan come payday, if debts are getting the better of you there is free help available: DirectGov, National Debt Helpline
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