Avoid using expensive credit cards to stay out of debt

Wed, 24 Aug 2011

Brits worried about should avoid using their credit cards where possible, it has been suggested.

According to Candidmoney.com, plastic can be useful if the balance is paid off in full each month, but they should only be used in the right way.

Spokesman Justin Modray explained that credit cards can offer up to 56 days of free borrowing, while items over £100 are also covered by the 1974 Consumer Credit Act, meaning you are protected if something goes wrong.

"But if you end up borrowing money, credit cards can become a prohibitively expensive way to shop and risk sending you into a descending spiral of ," he warned.

"If you have a that you can't afford to repay within a couple of months, then apply for a zero per cent card with a view to transferring your balance and if that's not possible, then come up with a plan to repay the debt as quickly as you can."

The expert advised against using plastic to splash the cash on something you cannot really afford, noting that it is better to save than to end up with expensive .

"And if you're tempted to use a card to splash out on more than you can afford, think twice. Better to save up for something than rack up expensive debts that could end up strangling your finances."
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