Every day, people all over the world are using credit cards as a convenient way to pay for the things they need. So why is it some will get themselves in to financial difficulty when using them?

Here are a few of the common failings those who find themselves in financial difficulty might recognise and those who want to avoid such problems should take on board.

Buying on Impulse

Sometimes it can be tempting to buy something as soon as you’ve seen it, but if this happens often and you haven’t factored in these expenses they can soon mount up.

Therefore, it’s perhaps wise to come up with a budget and ensure anything you do buy is affordable – and needed in the first place. In other words, give yourself a bit of thinking time before handing over your plastic at the checkout.

Exceeding your Income

It’s important to have a good idea of what your income is each month in comparison to your average outgoings. Make a note of regular bills such as mortgage or rent payments, food shopping and household bills and find out how much you have left over for everything else.

Take a look at your statement to find out how much you spent last month overall – if it was more than you earned then you might soon find yourself in debt if you don’t change your habits.

Using Debt to Cover Debt

A sure fire way to put yourself at risk of spiralling debt is if you use credit cards to help you pay off existing balances. This is unlikely to resolve the issue in the long term as it’s simply passing the debt around, while interest rates cause it to grow. If you do want to give yourself a bit of breathing space then making a balance transfer could be the way to do it. Making a balance transfer credit card application could allow you to pay off your debts without having to worry about spiralling interest, as they offer a 0 per cent interest rate for a pre-defined period.

Spending Beyond your Means

Although a credit card gives you the opportunity to buy items you might not normally be able to afford in an instant, it’s still important to remember that you’ll need to pay for them eventually. If you can clear the full balance at the end of the month then all the better, as that way you won’t have to contend with interest.

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