Repay as much as you can, as soon as you can
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IF you have gone on a credit card spending splurge over Christmas, then the best advice is to pay off as much as you can, as quickly as you can.
The Financial Regulator also advises those heavily in debt on their cards to stop using them until the debt is cleared.
You should avoid the 'minimum payment trap', where you only make small repayments, as your debt will grow.
One option is to take out a bank or credit union loan. Also, ask your provider to consider reducing the interest rate on your card -- this will reduce the debt each month.
Consider reducing the credit limit to an amount you can comfortably afford to repay every month. Try not to use your card to withdraw cash, as interest is usually charged immediately or think about switching to a credit card that has a low interest rate on balance transfers.
You can get help from the Money Advice and Budgeting Service (MABS).
- CHARLIE WESTON
Irish Independent
