How to avoid late payment charges on your credit card

Barclaycard launched its first card half a century ago, making it easier than ever to get hold of credit quickly.

Although it wasn’t the first charge card, Barclaycard really kicked off Britain’s credit use. According to recent research from Debt Advisory Centre, two-thirds of adults now have at least one credit card.

But could a love of plastic lead to financial difficulty? Here’s what to look out for if you’re a credit card user.

The first Barclaycard meant that most Britons could get their hands on credit. For some people, this was the first time they could do this, as most women would need a male guarantor to take out a loan.

And with the research showing that 65% of Britons now have a credit card, it seems the nation’s love of credit isn’t set to go away any time soon. New payment methods like Apple Pay and Samsung Pay might mean we’re not all physically pulling out our wallets as often, but we’re all certainly turning away from cash.

While credit cards are a really easy way to borrow money, this can be a double-edged sword. If you use credit cards irresponsibly, you can start to struggle with your repayments quite quickly.

Debt Advisory Centre research showed that two in five credit card users don’t repay their balance in full every month. This means they will build up interest and pay back more than they borrowed. And if they miss payments entirely and start to fall behind with what they owe, they could even get a late payment charge.

If you’re a credit card user, don’t worry – you can use your credit card responsibly. Here’s how you can stay on top of your borrowing.

The best way to use credit cards is to always pay it back in full every month. That way, you won’t have to pay any interest.

Set up a Direct Debit or standing order to cover at least the minimum payment due on your credit card. This means that if you can’t afford to clear the balance, you’ll at least meet the minimum payment and avoid any late fees or charges.

Don’t withdraw cash on your credit card. There’s usually a charge for this so check which card you get out at the ATM!

Check your statement carefully every month. If you don’t remember paying for something, it could be a sign that someone else has used your card.

If you’re starting to struggle with credit card repayments, you can get help from debt experts like Debt Advisory Centre. You can also get free and impartial advice from the Money Advice Service.

Debt Advisory Centre: 0161 871 4881