A monthly budget can go a long way to helping you manage your money. Knowing how much you spend on essential items such as food, rent, mortgage repayments, transport, insurance, and entertainment means you know how much you can spend on your credit card each month.
Write down everything you buy on your credit card to keep track of your expenses. Logging in to Online Banking regularly will help you keep on top of how much you're spending. Don't wait until your monthly statement to get a surprise!
This means that you will avoid some of the fees that many credit card companies charge, such as late payment fees or over limit fees. The best way to do this is to set up a direct debit from your transaction account to your credit card for the minimum or full amount. If you pay the full amount every month, you avoid interest altogether.
The best way to avoid having high credit card bills is to have a low credit limit. Ask your credit card company to reduce your credit limit down to what is manageable, or what you may need for a particular purpose such as a holiday.
Calculate your minimum repayments and see the difference higher repayments can make to reduce the interest you pay.