Is it time to increase payments on your credit card?

By: Reno Charlton
Over the past year finances have been tight for many of us, and as a result of this more and more of us have been turning to our credit cards to tide us over. With Christmas just over many of us have accrued even larger levels of debt on our credit cards, and the time has now come for us to start making repayments on the balance that we have built up over the festive season.

However, whilst we may have entered into a new year, the situation in terms of the financial climate is no better than last year and for many people is set to get worse. Industry officials have said that lending is set to get more stringent, the economy is set to get worse, and as many of us have already realised unemployment levels are set to soar.

Some officials have said that rising unemployment, coupled with other economic factors, are likely to result in a rising number of us defaulting on our credit card repayments as the year goes on simply because we do not have the cash to keep on top of these payments. With this in mind, it is worth taking the time to consider whether increasing repayments on your credit card balance might be a good idea in order to try and clear the debt whilst you still can.

If you compare 0% balance transfer credit cards there are still offers available up to 16 months in length and switching to a 0% or even a low rate life of balance transfer credit card deal could help to see your debt repaid much quicker as more of your payments will go towards paying off the principle balance.

Some life of balance transfer credit card deals now have no handling fee so there is a less of a cost to move and the low rates last until the balance is repaid in full.

None of us want to dwell on depressing things such as redundancy and the like, but the fact is that in the current climate more and more of us are finding ourselves without an income. By stepping up your repayments now whilst you do have money coming in, and by clearing the balance as quickly as possible, you could benefit in a number of ways. You will reduce the amount of interest that you have to pay on your debt, you will have one less debt to worry about in the event that your income is reduced, and you will have an available credit card to fall back on if things do get tougher.

None of us know what fate has in store for us, and in such an uncertain climate it is best to try and get rid of as much debt as possible as quickly as possible rather than just paying off a little at a time and then realising that you do not have the capacity to continue with repayments.

If you have a good credit rating you can still compare credit cards and get a cheaper rate of interest on your credit card balance.




About The Author:
Reno Charlton, award-winning writer, shares her financial expertise as a contributing columnist for Credit Card Comparison, where you can compare 0% balance transfer credit cards.