Here are some top tips on handling your credit card debt:

• A credit card is just that: credit. You may have several credit cards that add up to several thousand pounds, but that is a credit limit. The important thing to remember is that this line of credit is not how much money you have to your name. Your line of credit is actually your potential of debt: the more credit you use the more debt you will carry — debt which must be repaid.
• Paying the minimum is a bad idea. The “minimum amount due” is a really slick way of getting you to pay off your debt over the course of several decades. It was invented for the sole purpose of increasing the profits of the credit companies. Always pay more than the minimum (and pay off the entire debt in go if you can).
• Fees, fees, fees: if it exists, lenders have found a way to charge a fee for it. There are the obvious fees- late payments, overdrafts, etc but there are also less obvious fees that can quickly drain your bank account: balance transfers (both to and from your card), speaking to a customer service rep, inactivity fees, “minimum balance not met” fees. Even the most trustworthy borrower can succumb to these fees.
• When in doubt, don’t charge it. If you’re struggling to make your payments, then stop charging items on your credit card. You’ll need to change your spending habits. You may also want to roll your account balance over to a card that charges a lower interest rate.

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