Thousands of UK shoppers have overused their credit cards during Christmas and this week their first credit card bills are landing on their doorstep. Some people will be dreading to check their bills, others will wonder how they can pay off their credit card balances.

There are many solutions to clearing your credit card debt in a way where one avoids piling up more debt through interest charge. A recent article by The Guardian shows ways on how to manage your credit card debt as well as clever ways to reduce your outstanding debt. Here is an extract:

Depending on your credit rating, you could switch your existing balance on to a 0% balance transfer credit card and pay off whatever you can within the interest- free period 

Interest free cards can be one solution to cut the amount owed to credit cards but not the only one, as the article continues:

If your balance is particularly high and you really are at your credit card limit, then it may be worth taking a loan to clear your balance.

Debt consolidation can also have far reaching benefits. Consolidating your debts in to one easy monthly repayment each month will not only lower your outgoings but also improve your credit score and it could just be the first step towards a clean credit sheet. Remember then to cut up your credit card so avoind being tempted into continuing to spend on it.

This entry was posted on Friday, January 9th, 2009 at 11:43 am and is filed under Credit, Debt.