January is “payback time” for credit card users

January could be an effective starting point for those that want to clear some of their credit card debts accrued over the Christmas period, it has been stated.

Credit referencing agency MyCallcredit, which says that 31 million consumers may have spent a total of £11.4 billion on credit during the festive period, is offering tips on monitoring levels of debt and managing them effectively.

These include paying off more than the minimum amount on credit card balances – MyCallcredit recommends repaying ten per cent of the monthly total.

In addition, it advises consumers to prioritise and pay off the cards which have the highest amount of interest first.

If unsure of how much is owed, borrowers can also get a copy of their credit report to check what is due to be repaid to each company.

“It is more important than ever that people monitor their debt situation and budget to pay back any overspending,” said Melanie Mitchley, a spokesperson for the company.

If managed correctly, credit cards can provide a useful method of personal financing.

Consumers looking to consolidate their debts could also apply for a personal loan to cover repayments.

© Adfero Ltd

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