What do you really know about your credit card?

Lots of us use credit cards as part of our day-to-day spending. But how much do you really know about what you’ve signed up for?

Well, new figures from Zilch suggest that a worrying number aren’t across all the facts.

For example, nearly one in three (32%) say credit agreements are difficult to understand.

And on top of that, more than a quarter (27%) say they don’t know how long it would take to repay their balances.

Why this matters

This is a real concern as the same survey shows people are relying on credit more, for everything from buying groceries to filling up their car.

And two-thirds (67%) of those polled admitted that cost-of-living pressures have increased their use of credit.

Of course, having a credit card isn’t inherently bad if you can afford to keep up with repayments.

But if you’re struggling with money, relying on credit cards and being hit with a high APR, it can quickly become very costly.

Even a relatively small balance can grow into something much harder to manage if it isn’t cleared.

So you really need to know what you’ve committed to, and how long it would take you to repay what you owe, or you risk falling into problem debt.

What to do if you’re worried about credit card debt

If you’re finding it hard to clear your credit card balance, there are steps you can take to stop the problem getting worse.

Check your spending habits

It’s important to know exactly how much you’ve got coming in and going out.

If you start to understand your spending, you can work out where you might be relying on credit and where you can cut costs.

Use our free budget planner to get started.

Pay more than the minimum

Even an extra £10–£20 a month can make a big difference in cutting down interest and reducing your balance faster. 

Look at balance transfer options

If you have a big credit card debt, moving it to a 0% balance transfer card can give you breathing space to pay down your debt without racking up more interest.

Ask for help early

If you’re concerned about falling behind with payments, get in touch.

We can discuss what options are open to you and help you find a way forward.