If you are late with a payment or miss a payment entirely, you will be assessed a fine (usually around £12), and this infraction will be recorded on your credit report, which could affect your future access to credit.
It’s also possible that the introductory 0% APR offer on your credit card will expire, at which point you’ll be charged interest on your balance.
If you are having trouble making your payments, you should contact your lender as soon as possible so that you may work out a repayment plan that works for both of you.
That said, you can take steps to better your situation. It depends on your position, but your credit card company may be willing to reduce or suspend your payments.
Don’t use your credit card any more than necessary. You can use this to better manage your credit card debt.
A budget is a must if you are to take on the debt. After paying your monthly rent, food, and other necessities, you’ll know exactly how much money is left over to pay off any other debts you may have. It’s called “available income” when it’s the total amount you’re left with after expenses.
Your budget can help you decide how much of your income is suitable for paying off debts like credit cards and other low-priority loans.
If at all possible, pay at least the minimum payment on your credit card balance each month. Your credit card company may assess charges if you pay less than the minimum payment due. As a result, your total debt and credit rating will be impacted.
Set up a direct debit from your checking or savings account to your credit card balance if you can afford to make regular repayments. This means that your monthly payments will remain constant.
Keep an extra copy of your budget just in case. Send your budget to your credit card company if you need to request reduced monthly repayments. It’ll pay that your asking price is reasonable.