Article

Today, credit cards are a part of everyday life for many people. If you’re like most people you probably have one or two cards in your purse or wallet. These little pieces of plastic can be very useful in managing your finances but can also cause quite a bit of damage, so when it comes to credit cards one thing to keep in mind is “buyer beware.”
According to the APACS, there are almost 70 million credit cards being used throughout the United Kingdom. To top it off, these millions of cards equate to a yearly spend amount of about £350 billion! Some of this spending is responsible while the rest of it contributes to consumer debt significantly.
Some people use cards to spread out the cost of a major purchase such as a large appliance or vacation while others keep them at the ready for emergency expenses. Other cards are used to earn cash back or reward points associated with purchases. Regardless of the reason, it is obvious that credit cards are a major part of the UK’s economy.
When it comes to dealing with credit cards it is absolutely essential that you do so in a responsible way. Having a source of revolving credit will definitely help you obtain a credit rating, but it can also be the source of your financial downfall. On a positive note, such credit will help you manage your money more effectively since you’ll have more flexibility but it can quickly turn the other way when you’re not careful. There’s a fine line and you should do your best not to cross it.
Unfortunately, many consumers are lured into applying for certain credit cards because of the tempting introductory interest rate offers. However, depending on your actual credit history and financial status, those introductory offers may not apply to you. Before applying for any card, you must read the fine print on any credit card application. That means digging deep and dealing with those lovely terms and conditions that no one ever wants to read. Beware that the great 0% introductory offer may last only a month or two and then skyrocket to 20% or higher afterward.
In general, you really shouldn’t have more than 3 credit cards at a time. And the golden rule to staying financially sound is to treat them as you would your bank account. If you can’t afford to pay for a purchase right away, don’t make it. There are a few different reasons why you might apply for a new credit card and those include:
·Transferring balances from high interest rate cards to lower interest rate cards.
·For international travel – you won’t want to carry loads of cash with you.
·To earn rewards for spending that you can afford.
·For purchasing goods or services.

Regardless of why you want to apply for any credit card, always look at your current finances before you make any purchases with the card. As long as you use your credit responsibly you will be one of the lucky ones – the amount of consumer debt in the UK has grown exponentially in the last few years.