Published in on Tuesday, April 28 2009 by Ideal Debt Solutions
Halifax has re-launched its cash-back credit card. The card is supermarket-linked allowing you to earn 1% cashback on your grocery and fuel purchases, as well as 0.5% on all other purchases for your shopping basket.
Great – or is it?
Well yes and no – it all depends how you use it. If you’re struggling to pay back debts, such deals may look tempting. But be very, very, careful. If you’re the type of person who has already run up credit card debts and you’re struggling to pay off these and/or other debts, then can you really trust yourself to use such a credit card to its best extent? If so, then great; use it to maximum efficiency. But if not, look at the “typical” rate APR of 15.9% and ask yourself if you can really affords that level of interest repayment.
Of course credit cards aren’t inherently bad and they can be excellent tools for thrifty people when used effectively. But those kinds of people aren’t really likely to be reading this article. And for people in debt, generally speaking, credit cards are the biggest debt culprits in the UK today, but they prey on those least able to afford further debt.
In fact, it’s usually better to take out alternative loans to pay off your credit card debts – as credit card debts are usually some of the most expensive types of debt around. A consolidation loan can be a good option, but again, only if it’s used wisely rather than as an excuse to spend more and take on even more debt.
If you’re in debt, there are many steps you can take to dig yourself out, the most important of which is to face up to your problems and seek expert personal debt advice.