Here’s the last of this week’s guest posts. Stay tuned for regular posts to pick up next week!

For many people, one of the major plus points of owning a credit card is being able to pay for big ticket items such as holidays, cars or household improvements gradually rather than all at once. While this can be useful for many, it can lead to debt problems – particularly if your interest rates start to soar.

Credit card users should always consider how soon they are likely to be able to pay back their full outstanding balance. Even if you have a card with a high rate of interest, this won’t prove to be a problem if you’re able to make repayments in full each month.

However, if you find yourself only covering the minimum amount required each month, you could soon find that interest rates cause the overall balance to grow rapidly in a relatively short space of time. For some individuals, this can become so problematic that they end up paying more in interest than the total of the original debt.

Ways to avoid this issue

The most obvious solution to avoid getting in to growing debt problems is to pay off the full balance, meaning interest rates are not charged. This isn’t always possible though, so keep some of the following in mind to stay on top of what you owe.

Make a balance transfer

If you find your debt is becoming problematic, you might like to apply for a credit card with a 0 percent rate of interest for a limited time. Making a balance transfer of this kind could allow you to deal with repayments without interest, as many products offer this for luxury for 12 months or more.

Stop using the card

It seems obvious, but you can stop your problems from growing further by not using your plastic until you are in a better financial position.

Cover as much as you can

Always remember that your total balance will be subject to the agreed rate of interest, so it’s well worth trying to put a dent in it by paying as much as you can.

Pay off the full balance ASAP

While covering the minimum repayment one month may not lead to any real issues, you should aim to cover it in full the next month if possible.

Pay on time

It’s important to read the terms and conditions of your credit card because factors such as missing a bill date, using it to withdraw funds from an ATM, and using abroad can all lead to additional charges.