Tips on Avoiding Credit Card Fees

It goes without saying that credit cards are an absolute essential part of our consumer spending toolbox, and you would be hard pressed to find a wallet anywhere in the UK which doesn’t contain at least one. With statistics showing that there are over 30 million UK consumers with one or more credit cards, and that over 2.2 billion purchases were made to the value of £140 billion, it is without question that they play an important role in both the British economy and society.

However as great a method of payment as credit cards are, they can also become extremely expensive if interest and fees are allowed to build up. You can avoid getting yourself into a financial pickle by carefully managing the use of your credit card and employing a little common sense.

Pay your credit card off in full each month or pay more than the minimum monthly payment

This is rather obvious but the easiest way of avoiding large interest repayments or late fees on your credit cards is to repay your credit card debt in full each and every month. If you are on a low income and your credit card balance is far too high to make this feasible, at the very least try to pay more than the minimum monthly payments. After all it is well documented how paying minimum payments alone on your credit card will see you pay far more than the original value of your debt, and it will take you years to pay off what you owe.

Look out for alternative credit cards with a 0% balance transfer offer

If you have credit card debt which is costing you an arm and a leg in interest payments each month, it might be worth looking at switching your balance over to another credit card with a 6-12 month interest free period on balance transfers. Banks and lenders are always on the lookout for new customers and you could take advantage of this to start chipping away at your credit card debts, minus the interest.

Pay on time and don’t go over your credit limit

As if paying large interest payments alone isn’t enough, there are also a range of fees which your credit card provider will hit you with if you are not careful. If you make a late payment on your credit card or you accidently stray over your credit card limit, there is a very strong chance that you could be hit with a £12 plus fee for each indiscretion. To avoid falling foul of such charges, always be sure to make your minimum monthly payment three working days before the payment due date, and keep a close eye on how much you are spending.

Never withdraw cash from an ATM machine with a credit card. Ever

Last but not least, always avoid drawing money from a cashpoint with your credit card unless you have absolutely no choice. Withdrawing cash from an ATM will see you either pay very high rates of interest on the money that you have withdrawn or you will find yourself paying a considerable fee for the privilege.