Repay credit card balance in full each month, advises expert Paying by credit card can be cost-effective but make sure you repay your balance in full each month, an expert has warned.
Justin Modray from Candidmoney.com has pointed out that when a credit card balance starts incurring interest, the consequences can be “painful”.”For example, if you spend £2,000 on your card and only repay the typical monthly minimum of three per cent, it would take you over 15 years to clear the debt and end up costing you nearly £1,500 in interest at 17 per cent APR,” he explained.Mr Modray also recommended looking for a credit card with a 0% introductory rate, making sure you repay the balance once the rate ends.Yesterday, Barclays unveiled a new credit card with the longest ever 0% transfer period – two years.The card was welcomed by Stefan Maryniak, Personal Finance Expert at uSwitch, who said it would create competition among credit card providers – with the customer as the winner in the long run.Mr Modray also advised looking closely at extras offered with credit cards, such as travel insurance.”Make sure the extras are worth more than any fees you have to pay, and check the interest rate is competitive if you’re likely to borrow,” he added. 
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