A direct debit payment is the method more Brits use nowadays in order to make sure they don’t end up late on payments when using their credit cards. This method was brought forth by Michelle Whiteman, who is the spokesperson for the UK Cards Association, which is part of the UK card industry.
Ms Whiteman said: “Setting up a direct debit for at least the minimum repayment is a sensible idea as it helps you to avoid any late payment fees.” The actual downside of credit card debts stands in additional charges to one’s already considerable debt. Another advice that came from the spokesperson consisted in routine pay which should happen at the end of each month. This way, credit card users would definitely have their accounts unaffected by an increased interest.
Ms Whiteman also revealed that about 61% of cardholders respect the monthly balance and pay it in full.
Another issue represents credit card fraud. The number of fraud cases has steadily decreased, but credit card users need to prevent this issue as much as possible. Financial Fraud Action UK recommended keeping secret the PIN, and memorize it rather than write it down on a piece of paper. There are cases where people don’t get to pay the monthly balance in time. These people are encouraged to make a minimum repayment in order to get their names erased from the debt list. If they don’t manage to at least make the minimum repayment, they risk having their future credit requests denied.
An efficient credit card management is necessary as there are millions of Brits who use debit cards regularly.
The UK Cards Association revealed that there were at least 58 million valid credit cards roaming people’s pockets and wallets in 2009. This figure is not as important as the sum gathered by credit card spending only in 2010, which is about £10.4 billion.