{"id":17880,"date":"2023-02-27T10:47:23","date_gmt":"2023-02-27T10:47:23","guid":{"rendered":"https:\/\/www.ccpc.ie\/consumers\/?p=17880"},"modified":"2023-12-11T14:58:07","modified_gmt":"2023-12-11T14:58:07","slug":"take-control-of-your-credit-card-spending","status":"publish","type":"post","link":"https:\/\/ccpc.inventise.ie\/consumers\/2023\/02\/27\/take-control-of-your-credit-card-spending\/","title":{"rendered":"Take control of your credit card spending"},"content":{"rendered":"

Do you know how much interest you\u2019re paying on your credit card every month? You\u2019re not alone if you don\u2019t! Recent research carried out by iReach Insights showed that 66% of consumers here in Ireland don’t know exactly how much they pay in interest on their credit card.<\/p>\n

24%\u00a0of those surveyed\u00a0believe they pay less than 5% interest. In reality, credit card interest rates vary from\u00a013% to 26%, depending on which credit card you have.<\/p>\n

Here at\u00a0the\u00a0CCPC,\u00a0we want to help you\u00a0manage your\u00a0<\/strong>money better.\u00a0You can find\u00a0out more on our money hub<\/a> if you\u2019re unsure about how credit cards works. We\u2019ve also put together our top tips to put you back in charge.<\/p>\n

Using your credit card<\/h2>\n

When using your card, you should remember that credit cards are one of the most expensive ways to borrow, unless you\u2019re paying the balance off in full each month. You should avoid putting day to day spending on your card if you cannot afford to pay it off in full. You should also consider other forms of credit for larger purchases. For example, if your fridge breaks down and you need a new one, a personal loan of \u20ac1,000 from any provider on our Money Tool<\/a> would be cheaper than even the cheapest of credit cards currently available, if you\u2019re paying it off over a period of time.<\/p>\n

Understand your interest rate<\/h2>\n

The interest you pay depends on your provider’s annual percentage rate (APR). APR\u00a0is the interest rate charged on your credit card balance each month. The higher the APR is,\u00a0the more you’ll\u00a0pay for the money borrowed. Check your bill to see what your current rate is and see\u00a0our\u00a0credit\u00a0card\u00a0Money\u00a0Tool<\/a>\u00a0to compare the different\u00a0rates on offer.<\/p>\n

Remember, you can avoid having to pay interest by paying your balance in full\u00a0every month.<\/p>\n

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Top Tip<\/h3>\n

Many people wrongly think if they pay the minimum payment each month, they do not pay interest. Unless you clear the full balance each month, you are paying interest.<\/p>\n<\/div>\n

Clear your card<\/h2>\n

If you find yourself only making the minimum payment each month, it may be time to make a plan to clear your card. You can use our clearing\u00a0your\u00a0credit\u00a0card\u00a0calculator<\/a> to help you see how long it will take to clear it with your current provider, and if you switched to a different provider.<\/p>\n

You may also be able to switch your card and transfer your balance to a lower interest rate.\u00a0This will give you the breathing space to pay down the balance.<\/p>\n

Be sure to find out:<\/p>\n