Credit card debts 'can be avoided'
Credit card debts 'can be avoided'
Monday 2nd February 2009
The best way to avoid unmanageable credit card debt is to pay back as much money as possible each month, the Observer explains.
Although this tip may seem "blindingly obvious", many card holders still fall into the trap of paying off the minimum monthly amount only, causing their debt to grow larger due to interest charges.
The newspaper states: "With mortgage rates becoming cheaper for lots of borrowers, a credit card or loan is likely to be your most expensive debt.
"Paying it off early will not only save you sleepless nights worrying about your debt, it will also save you a lot of money."
The Observer also advises switching to a cheaper credit card, although it warns consumers not to make too many applications, as this can have a negative impact on your credit rating.
A weakness for "impulse buying" on credit and debit cards leads many British consumers into debt, the Thrifty Scot claimed recently.
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