CREDIT CARDS

Good Housekeeping (UK) - - Financially Fabulous -

If you have credit card debt, the in­ter­est could set you back by hun­dreds of pounds. The av­er­age Brit owes £2,586 on plas­tic, ac­cord­ing to The Money Char­ity. Based on a typ­i­cal 17.95% rate and pay­ing £100 a month, you’ll pay £638 in in­ter­est a year.

DO IT NOW!

◆ Slash this cost by mov­ing your credit card debt to a 0% in­ter­est deal, where you don’t have to pay in­ter­est on your monthly pay­ments. You may have to pay a bal­ance trans­fer fee, typ­i­cally around 1.95%, but you’ll still save £588. ◆ Make sure you keep up re­pay­ments – miss just one and you’ll lose the 0% of­fer

and be slapped with a hefty late pay­ments penalty. ◆ Don’t use the card to make pur­chases: only use it to clear your debt. ◆ Low credit rat­ing? You might not be able to se­cure a 0% deal. In that case, shop around to get the low­est and long­est pos­si­ble in­ter­est rate for a credit card – try look­ing at com­parethe­mar­ket.com.

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