Image courtesy of
Image courtesy of
If you have a credit card, you may just use it without really thinking about how much it costs you. However, credit cards have a lot of associated costs. Not only could there be a yearly fee, there will also be interest fees added on each month that you do not pay off the full balance and charges for drawing cash out with the credit card. It is therefore really important to be aware of what the charges are and when they will apply. It is also wise to take a look at the below hints to help.

Low interest rate card
If you have a tendency not to pay off all of your balance each month then it is wise to look for a card with a low interest rate. There are very few zero interest cards these days, but you may find a few or a low interest one. Of course, banks have to make money somewhere so a zero or low interest rate may only last for a short period of time, so you will need to check. See whether it is foxed for a short term or whether it is a variable and therefore could change at any time. If the rate goes up them try to find a better deal elsewhere.

Repay all balance
The best thing to do to avoid interest fees and charges is to pay off all of the outstanding balance each month. This may be difficult at first, but if you start by paying off more than the minimum and slowly reducing the debt, you should be able to get in control of it eventually. It may seem rather daunting at first, but even small reductions will add up and as you get into the habit of spending less so that you can repay the debt, it will get easier. Also once the debt is reduced, the interest payments will be less and you can use some of this saved money to repay more debt.

Use cashback card
If you spend a lot on a credit card, then it could be worth getting a cashback card. This will pay you back a percentage of what you spend on the card. It is worth being very careful though. These cards will only pay you back less than they charge in interest and their interest charges tend to be higher than cards that do not offer cashback, so only do this if you always pay back the full balance each month.

Reduce card use
It could be wise to just reduce the amount that you use your card if you are finding it expensive. If you use it less and repay more of what is owed, then the costs could fall quite dramatically. It can be difficult to do this, but if you want to reduce the cost of the debt, it is the best way. Make sure that you do not build up more debt, so spend less on the card, pay more back than the minimum and whittle away the debt until it is gone and there are no longer any fees to pay.