Money | Are you managing your credit card debt right?

It’s all too easy to book that short break away, buy that must-have top and enjoy post-work dinners when we have our credit cards in our purse. Repaying the debt is the hard part.

Credit cards are a necessary evil for many. They are the most convenient and safest method of payment for key purchases, but it is all too easy to accumulate a lot of debt and interest payments.

By being saddled with this debt, you also miss out on the opportunity to earn the potential monetary rewards on your cards.

To get your card finances in order, you should seek out a credit card which offers a zero percent introductory interest rate on balance transfers.

KBC bank, for example, has this offer. To avail, you must close your existing account and provide the account closure letter to the bank within 90 days. Consumers can also get up to 56 days of interest free credit if the balance is paid on time and in full every month.

Permanent TSB also offers free balance transfer, as well as zero percent interest on any purchase for the first three months.

Take advantage of these terms and try to pay down your debt as much as you can within this short time frame.

Seek out promotional offers and special rates. If you are a Tesco shopper, for example, it may be worth considering their card to earn additional points. You get one point for every €2 spent in each purchase transaction.

Another approach to relieve your debt burden is to repay more than the minimum payment each month. If you have a debt of €2,500 at an 18% interest rate, the average minimum payment is €75. If you take this repayment method, it would take you three years and 11 months to repay this debt at this rate. However, if you increase your repayments to €150, you can pay it back in 20 months.

However, the easiest way to avoid such debt is by simply not using your credit card. Take it out of your purse, and only use it in real emergencies. Use your visa debit card instead. This allows you to have greater control over your finances and you are only spending what you can really afford at the time.