Financial Planning For Credit Card Users by:Mark Lambie

Credit cards can be an excellent tool to help you manage your finances

. But sometimes we make poor choices, or sometimes the events in life take us beyond our expectations and we are left to foot the bill. Perhaps you have had a few months of extra, unexpected expenses that you are now paying for. What can you do?

If you are faced with several large credit card bills, a UK personal loan is one choice for you to consider. Many people are selecting a UK personal loan to add to their financial portfolio and you might want to consider using one to deal with those credit card bills. Here's how.

Gather together all of your credit card bills and add up the amount that you owe. Factor in the extra expenses you haven't heard on your credit cards since you receive those bills. Add to that about ten or twenty per cent, which is the "whoops, I forgot about that" factor. Then, with that figure, start shopping around. There are many UK personal loan institutions that want to do business with you.

Get the loan and pay off your credit card bills. If you think that you may still use your credit cards or, you may want to hide them away so that you reduce the temptation to use them.

Now, instead of having several credit card bills at a high interest rate due by the end of the month, you now have one bill that is due once a month at a lower rate. This is called consolidation. At first glance it may not seem obvious why you'd want to do this but there are two reasons:

The first reason is that you will save a lot of money on interest rates. In fact, some UK personal loan interest rates might be as much as half of regular credit card interest rates.

The second reason is that you will get one bill with a fixed amount due every month rather than several bills with several amounts due throughout the month. This will help you budget.

Credit cards can be an excellent tool to help you manage your finances and by the things you want or need. But when things go a ride and your bills get out of hand, which happens to be even the best of us, choosing a UK personal loan as a way to consolidate those bills will help you reduce your interest rates and set up a fixed amount of payment. Reduced interest rates will ultimately increase the amount of money you keep and a fixed amount due every month will help you plan your budget.

About the author

Mark Lambie is the founder of http://www.loan-source.co.uk a website providing free secured loan quotes. Apply today to find out how much we can save you.

POST COMMENT

Driving Factors to Upgrade Your PBX by:Charles Carter Management Span of Control and The Power of Models by:Charles Carter The Importance of Gross Profit Margin by:Hari Wibowo Swipe Age: What Is A Credit Card Machine? by:David Riewe Emotion In Investing by:Hari Wibowo Credit Cards Are Like Loans by:Mark Lambie Reasons Why a UK Personal Loan Might Be a Good Idea For You by:Mark Lambie Three Things To Look For in a UK Personal Loan by:Mark Lambie Accounts Receivable Factoring - A Viable Cash-flow Solution for Small and Medium-Sized Enterprises by:David Springer Seven Steps to Safeguard your PBX System by:Charles Carter Free Download Hosting for Telecommunication Programs by:Charles Carter How to Convert Your Real Estate Notes into Quick Cash by:David Springer Get A Credit Card With A Low Interest Rate by:David Riewe