Sometimes, we can overestimate how much we are able to afford to pay back. As a result, we place expensive items such as holidays and the big shop on our credit cards thinking we can pay them back.

Instead, focus on using your credit card for smaller items you are certain to be able to pay back in full at the end of the month. 

Life is full of surprises. Cars break down, boilers become faulty, phones need replacing - the list goes on. Ideally, you would use an emergency fund to help pay for these incidents; however, many people do not have one in place, resulting in them having to use their credit cards to make the payments.

If this unexpected expense turns out to be something you later cannot afford, you will likely find yourself at risk of credit card debt.

The impact of divorce is abundant. Divorcees face not only a physical and mental toll but, in many cases, a greater financial burden is also on the cards.

The legal fees for divorce proceedings do not come cheap - add to that the financial strain of living solely off one income - which means that higher dependence on your credit card following a divorce can be common. 

Credit cards come with additional charges such as interest rates. This means the minimum payment only makes a small dent in the overall balance owed - your minimum payments are likely to be paying off the price of interest over the debt itself.

Falling into a pattern where you only make the minimum payments creates more problems than it resolves, making it easy to fall into a credit card debt loop.

It is no secret the cost of living has increased exponentially in recent months. In fact, almost 9 in 10 adults living in the UK have reported their cost of living has increased in April 2022.

From the cost of energy rising to the price of food staples like bread and milk on the rise, living within your means is becoming harder. Without wages increasing to meet these demands, it can cause many people to resort to using their credit cards more regularly. 

With the changes in the economy, more people run the risk of being made redundant/let go without much warning. This means the security of having a salary you can rely on to make your bill payments is reduced.

For those with no savings or money coming in, many turn to their credit cards to make the payments while trying to figure out their next move. However, it is worth exploring other options first, such as government assistance, before seeking out increased credit.

Depending on your credit score, you may be able to transfer your existing debt to a 0% interest credit card, which makes your monthly payments each month interest-free. By using a 0% interest credit card, the payments you make will go straight towards paying off your debt - rather than the interest rate.

When you transfer your balance around from one credit card to another, there will be a small transfer fee. The fee will vary depending on your card provider - it is roughly £30 for every £1000. 

It can become very easy to get stuck in the rut of only making the minimum payments on your credit cards.

However, by paying the minimum amount only, you are likely just paying the interest on your card and not tackling the actual debt you owe.

Missing a monthly payment happens. In most cases, it is because you forget to make the payment on the correct date. To prevent this from happening, you can create a direct debit plan with your credit card providers.

This will ensure you are making consistent payments toward your credit card debts. You will be able to set up a schedule to either make the full payment each month or agree on a fixed amount each month. 

Create a budget to see how much you can contribute towards your credit card payments each month. Note down your outgoings and incomings, and see if there is anything you can change.

Having a visible representation of your budget will enable you to see exactly how much disposable income you have. This will allow you to determine how much you are able to contribute to your credit card payments each month.