- Don't use your credit card to get cash. There is usually a minimum charge of £1.50 or £2 for making the withdrawal. Interest may also be charged - at a higher rate than on purchases - from the date of the withdrawal. The best way to avoid temptation is to destroy your credit card personal identification number (PIN) without looking at it.
- Be wary of credit cards offered by shops and large retail groups to be used exclusively in those stores. Store cards are usually an expensive way to borrow.
- Don't use the cheques that several card companies issue alongside their cards. Writing a credit card cheque is like making a cash withdrawal, and attracts the same sort of charges and interest.
- Using a credit card cheque rather than the card itself also means that you lose the protection of the Consumer Credit Act.
- Don't be taken in by what looks like a low monthly interest rate. A monthly rate of 2.2% translates into a yearly rate of nearly 30%. On a debt of £500, this would mean paying approximately £150 in interest.
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