Credit Crunch

If your “flexible friend” is looking more like an enemy at the moment, then perhaps it’s time to reassess your relationship with credit cards.

Credit cards are often relatively simple to obtain. Sometimes it’s simply a case of signing a letter that comes through your letterbox and then you’ve got a couple of thousand pounds at your disposal – fantastic, if you pay off the balance every month. However, if you aren’t able to meet the minimum monthly payment, then credit card debt can soon spiral out of control.

Check the small print

A company may offer 0% interest on its credit card, which can sound like a great deal – but do you really know how long it is going to last? How closely do you read the terms and conditions? If you’re more likely to skim over the small print and sign it, then you could find yourself paying a high interest rate after only a few months.

Many people are enticed by shops which offer a discount on purchases if you sign up to their store card. But if you’re not careful about reading the small print or keeping on top of your repayments, that discount could end up costing you much, much more than the item in the first place.

So how can you ensure that you’re credit savvy enough to spot a good deal from one which will ending up costing you a lot? What can you do if your credit cards have got out of control?

Neil and Diane's Cash Clinic

If you are having problems, then BBC Tees’ is here to help.

Starting on Monday Neil and Diane will be looking at different financial issue each week in their 'Cash Clinic'.

On Monday 26 January Neil and Diane will be looking at credit card debt and the steps that you can take to get back on your feet if you find yourself unable to pay your credit card bills. Listen to the show from 10am to 1pm to find out more.

Share your experience

If you can’t bear to open the credit card statement at the end of the month, then BBC Tees wants to hear from you.

Are you a credit card “surfer”, paying one monthly balance off with another credit card? Have you had a nightmare with store cards?

Have you got any advice that you can share on how to stop reaching for that credit card? Get in touch with us and let us know!