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Consumers Fail to Save Money with Bad Credit UK Cards
In January, many people get hit by the consequences of overspending in January. The problem is that the majority of them already have bad credit and fail to obtain a new card or loan to consolidate their finances.
The Dangers of Bad Credit UK Cards
The most important thing people do not consider before they get a poor credit card is that they can only build up their credit rating if they can keep up the repayments every month. Calculating the cost of debt on a 50 percent card is different from a zero percent offer. One needs to always know how much their next bill is going to be in order to budget. These products are not the replacement for a payday loan and they are designed for long term budgeting.
Budgeting Better with Poor Credit Cards
It is well-known that people can budget better with these cards if they read all the terms and conditions before they take out a product. They need to know the charges per month and also the minimum payment and the difference between the purchase balance and withdrawal balance. Some of the sites do not tell people that these financial products are not suitable for those with CCJ or bankruptcy, and there is a need to set up a direct debit to make the repayments.
Average APR Charges on Bad Credit Cards
The average credit balance charge is around 60 percent on these cards; that is why it is so easy to obtain them. Although they are good to rebuild one’s credit rating, people should not stick to them for long, as even when their credit rating becomes more favorable, the interest rate does not go down. The company might decide to increase the card limit, but that will only mean more interest charge. Therefore, once the goal is accomplished, people should get rid of the bad credit cards and transfer the balance to a lower interest product.
Find out more about debt consolidation poor credit cards UK services.