How to manage credit card debt - What do You Need From a Balance Transfer Credit Card

How to manage credit card debt

Being clear about what you can afford to borrow and repay each month and understanding how you intend to use a credit card will enable you to get the most out of one. If this is your first credit card, or even if you already have one, ask yourself:

Will you be able to......?

Use our credit card calculator to...

clear the balance in full every month

confirm what you could be repaying each month for different credit limits and interest rates.

only make minimum monthly repayments

find out how long it might take you to repay different credit limits.

make one off lump sum payments in addition to regular monthly payments

see how much interest you could save by making extra lump sum payments.

If you know you can repay the balance in full every month you will be in a position to take advantage of a credit card that may have a higher interest rate but more rewards and benefits. Likewise, if your income enables you to make additional one off lump sum payments occasionally, then you may be able to take advantage of a higher credit limit. If you're only intending to make minimum monthly repayments consider getting a card with a low to medium interest rate and smaller credit limit, to keep the debt manageable.

Most credit cards work in the same way, i.e. you can make purchases, cash withdrawals and transfer debt balances onto them. However, Car Loans

credit card companies usually offer credit cards by types that reflect the way they will be used, for example, if you want to transfer existing credit card balances you would be offered a 'balance transfer' credit card. This is why it is important to know how you intend to use your credit card, think about whether you need it to:

transfer debt from other credit cards or loans,

assist with day to day living expenses and small shopping purchases,

cover one off large purchases or expenses such as a wedding or a holiday or a home improvement,

pay for travel and purchases overseas,

provide cover in an emergency, for example unexpected vehicle repairs,

or provide a combination of some or all of the above.

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