Credit card advice please.

[Clare85 11]

If you cant even afford something for £700 dont ever get a credit card, as you would get into like so many dumb people have.

 

I hate being a penny overdrawn, so maybe this isn't a good idea no.

[janeplain 10]

Not having a go at you, But most people with credit card debt started with i am skint this week so i pay less and the debt gets bigger and bigger until it too much to manage

[barleycorn 10]

Just found a bill, my limit was actullay £650, and the cards been defunct since about March. I think I got it last April and used it to buy a new pram and other baby stuff, maxing it out. I've paid £16 a month since, and according to latest bill, I still owe £560 on it, this months bill of £16 includes £10 in interest, so the balance is clearing VERY slowly. I'll maybe start making bigger payments on it actually!

 

Making just the minimum payment every month is probably the worst thing you can do. Have a look here to see how just how long it can take to pay off...

 

http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card#calc

 

jb

[Rensh 10]

I personally think Credit cards are a good idea if you are strict enough with yourself from the start. I have had an Argos store card since i was about 19 and was started off with a £300 limit. Over the past 4 years I've spent on it and paid off within the interest free period and my limit has slowly gone up to £1600. Whenever I spend on it i simply just divide the amount I've spent by the number of interest free months i have and then pay that amount each month, Never pay the minimum payment cause i means paying even more the next month to catch back up.

 

If you want to spend £700 on a CC over 12 months interest free then just set up a DD for £58.33 and leave it to pay itself off. As long as you can afford the £58.33 without a doubt and can guarantee making the payments then go for it. If you find you have a little money spare at some point then pay it off or if after 6 months you have enough to pay it off then do so.

 

Just make sure you don't then get sucked in to buying more and more. Only use it if you NEED to.

[Mikes10 10]

I don't have a credit card, I have a bank account with a debit card

I only buy something if I've got money in the bank to pay for it, and

I only buy stuff from reputable organisations even if that means paying

a little more. The upshot of which is I don't have any debts. The lesson

was taught to me from a very young age by my mum.

[MonkeyLover 10]

I have had a Halifax Credit card for ages, always pay in full so never pay any interest. They pay me £5 per month if I spend over £300 - which I always manage to do!