The best way to use a credit card is to pay off the balance every month so excessive interest or charges are not incurred. It is also easier to control spending this way.
(PRWEB) February 5, 2006
Credit card debt is the largest contributor to serious debt problems in the UK, according to The Debt Help Site Annual UK Debt Survey 2006.
The survey shows that over 91% of those seeking help for their debt problems owe money through credit cards.
The next biggest factor is personal loans, featuring in 84% of cases.
Store cards are also culpable, contributing to 47% of serious debts.
Terry Galvin, editor of the Debt Help Site, believes part of the problem is the way in which credit cards are used by many consumers.
He said: "Credit cards are useful if used in the right way but too many people use them to supplement their income or fund an excessive lifestyle and only pay the minimum amount each month. That's when the credit card debt mounts up.
"The best way to use a credit card is to pay off the balance every month so excessive interest or charges are not incurred. It is also easier to control spending this way."
Galvin adds: "Another factor is that people tend not to look hard enough for the best deals, which are often further afield than the high street banks.
"If someone wants to clear their credit card debt, the best way is to look for a card with a more competitive interest rate and switch the balance over, then start paying it off as quickly as possible.
"There are a number of cards with introductory 0% interest rates and it is possible to keep switching and get away with paying no interest whatsoever."
For more advice on credit card debt and all kinds of debt problems, visit http://www.debthelpsite.net
# # #