Managing Credit Cards

It is very important to track your purchases and maintain your budget. Many people have a tendency to think of the credit card as cash they have available. This can get you into trouble. If you do not have the money to pay the credit card purchase, or will not have it in the near future, you should not be making the purchase. Credit cards should be treated as short term loans that must be paid back soon, not as available cash. It is best to establish your budget and figure out how much you can afford to charge each month. Once you have an amount subtract each purchase as you make it during the month. Once you have spent your "budget", do not charge more….or you will have payments due that you can not pay. Put any additional purchases beyond the set amount off until next month. Don't forget: You are responsible for the total charged, not just the minimum payment. Don't get into a habit of paying only the minimum. Leaving a balance on your credit cards means you are living beyond your means. This kind of spending can grow, until you are seriously in debt. So start controlling your spending from day one.

Did You Know: Two Cycle Billing

Two-cycle billing. Your credit card balance is computed using one of three methods: the adjusted balance method, the average daily balance method, and the two-cycle balance method. The adjusted balance method is the most consumer friendly: interest is charged on the account balance remaining after payments and credits during the billing cycle. The average daily balance method is charges interest on your average balance during the billing cycle. The one to watch out for is the two-cycle balance method, where the interest on your average daily balance is computed using both your purchases from that billing cycle and those from the month before. If you charge items in February, even if you pay them off completely, that figure would still be used along with March purchases in order to calculate the average daily balance for March. The average consumer is unaware of this sneaky credit card practise. Thank You, Please Carefully Review All UK Credit Cards Apply

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