Paying off your credit card debt in time
As well as understanding everything your credit card can do, it's also important to know the best ways to pay back your credit card debts. Your credit card statement is designed to help give you a clear picture of your credit card account. As well as showing what you've spent on your credit card it'll also show you what you've been charged for.
Along with any purchases you may have made with your credit card it also shows charges for cash withdrawals, balance transfers and, if you've been abroad any foreign transactions you have made. You'll also see monthly interest, any fees and the balance you owe.
How to pay off your credit card debts
You can pay your credit card bill by cash, cheque (over the bank counter or in the post), Direct Debit, telephone or via online banking, the choice is yours. You can normally set up a Direct Debit to pay the minimum amount, the full amount or a regular amount and it's a great way to ensure your payments are made on time.
It's really important to make payments on time, but if for any reason you miss or make a late payment or go over your credit limit you will be charged a fee. These charges will be shown on your statement like any other transaction.
The minimum credit card payments
Make sure that the minimum payment reaches your credit card provider by the due date shown on your statement. The minimum payment will vary by credit card provider, but your statement will give you all the details you need.
You can of course pay more than the minimum payment, all the way up to the full balance. Paying back more than the minimum means you'll clear your balance faster and save money so it's well worth doing it if you can.
Exceeding your credit limit
If you go over your credit limit make sure you pay more than the minimum payment. Your monthly interest may push you over your credit limit again and you will be charged, so make sure you pay back as much as you can.
To help you avoid paying any additional fees, try and pay your credit card provider as soon as you can - you don't need to wait for your due date to make a payment.
Even if you pay by Direct Debit always look at your statement so that you are familiar with any fees as well as checking all your transactions.