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How to kick your credit habit!

Are you over reliant on credit cards, loans or overdrafts? Does your bank balance always slip into the red by the end of the month? Over reliance on credit is one of the worst financial mistakes and can cost you big in the long run. Here are some top tips to help kick your credit habit.

How to kick your credit habit

1. Get yourself a debit card or a pay as you go card

One of the most tempting things about credit cards is that they are so convenient - you don't have to worry about carrying cash or visiting the ATM, you just pop your card in the machine, enter your PIN and take your purchase. However debit cards are just as convenient and there's no interest to pay, so if you haven't got one already talk to your bank pronto. All major UK banks offer either Visa or Mastercard debit cards. If you find yourself dipping into your overdraft, start using a pay as you go cash card. This means that you can only spend what you have loaded onto it.

2. Stop impulse buying

If you want something, save up to buy it. Don't purchase it on credit and add it to your debt. As well as reducing your debt, this will ensure that you only buy the things that you really want or need.

3. Pay off your credit card in full every month

Paying interest on your credit card balance is entirely optional. If you pay the full amount each month, you won't incur any interest or charges.

4. Cancel all your credit and store cards except one

If you're managing your debt correctly, you should only need one credit card. Kick your credit habit for good by calling the card providers to cancel your account (cutting the cards in half isn't enough). Tidying up your finances like this can also improve your credit rating.

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