Could now be the time to assess your credit card needs?

Whilst the UK debt situation reaches an all time high, you may want to start asking yourself some tough questions regarding your credit card. Do you use it frequently? Do you save it for a rainy day? Do you rely too much upon the card?

By assessing your credit card needs, it is only then that you can really sort out your finances. It could even be that you don’t even use your credit card that often and if so it might be worth considering actually cutting it up.

There are so many people out there who do not use their credit cards that often. Whilst this may seem like a good thing, what you may not realise is that credit card companies could be charging you anyway. Many banks, as well as independent lenders, are now clamping down on consumers who do not use their credit cards very often. Obviously they are losing out on money if the consumer’s card is not being used because there is no interest being paid. So in order to gain more money there has been annual fees added to those who do not use their cards overly frequently.

At the end of September the UK’s personal debt levels hit just under £1,400 billion and it shows no signs of slowing down. Credit cards are largely to blame and by having one you will always have the temptation to spend money that you just do not have. So you really do need to be tough with yourself. Do you honestly need your card? Would it not be possible to live without it?

Setting up a savings account is definitely a good idea. You could also switch to a prepaid card such as the bread card which allows you the convenience of using a card, whilst at the same time stopping you from getting into debt.

Overall cutting up your card if you do not need it is definitely a good idea. If you can get by without it then you should definitely just cut it up.