A credit card can be a really useful way to manage your spending and spread the cost of purchases.
If you’re purchasing a big-ticket item, like a sofa or a new fridge, you might not be able to afford to pay for this outright. Putting it on a credit card will allow you to spread the cost over a longer period of time, which could make it easier to afford – although bear in mind you will pay interest on the money you borrow.
However, as with all borrowing, it’s important to make sure you’re doing this responsibly. If you’re forgetful or don’t pay attention to what you’re using your credit card to pay for, it can be easy for your borrowing to get out of control. That’s why it’s important to stay on top of your credit card spending – let’s find out how you can do this.
Make sure that you’re never borrowing any more than you’ll be able to afford to pay back. If your monthly budget is already really stretched and you have no money left over after all your bills are paid, you’re probably not going to be able to afford the monthly credit card repayments on top of this unless you cut back in some areas of your spending. Remember, the longer you’re borrowing money, the more interest you’ll have to pay back.
You need to make sure that you’ll be able to afford to make at least the minimum repayment amount every month. If you don’t pay this off, you could be hit with late fees or missed payments charges. This could also cause problems for your credit history for up to six years, which could affect your ability to borrow money in the future.
One way that you can make sure you’re carefully monitoring your spending is by keeping a note of everything you’re using your credit card to pay for. You could do this by manually writing down every time you use your credit card, keep your receipts from it, or remember to check your balance regularly online.
It’s also a good idea to set up a Direct Debit to pay off at least the minimum on your credit card every month. That way, if you forget or have a month where you can’t afford to pay any more, at least you won’t be charged for making a late payment.
Managing your card
With the Ocean Credit Card, it’s easy to stay in control of what you’ve borrowed. You can log into your account, either from your home computer or via our handy app with your smartphone if you’re on the go. This means you can quickly check the balance on your card, and you’ll be able to see when payments are due, how much they are, and you can make sure that you don’t borrow more than you can afford to repay.
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Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender.