What you need to know about credit card debt:

Having numerous debts affects your credit score in various ways. 

You should only apply for a credit card once you are certain that you will be able to afford to make repayments every month without fail. Having a credit card has an effect on your credit score, depending on how you use it and how well you make payments. 

It’s important that you develop a repayment plan

You should have a clear plan for making repayments on a monthly basis. If you can’t make a payment, it’s always advisable to ask for help.

It’s often better to use credit cards as a payment tool, not as a revolving debt instrument

One of the easiest ways to avoid having to pay hefty fees in credit card fees is by using your credit card in cases of emergency.

Responsible use of your credit card will help you build a credit history

The single most important factor for success with owning a credit card lies in ensuring that you make payments on time. Set up automatic bill payments to make it easier for you to remember. You should strive to pay more than the minimum requirement in your credit card debt.

Keep in mind that credit card statements track every purchase date and amount spent.

Use these statements to ensure that you keep up to date with payments and to watch out for any fraudulent activity on your credit card. This can help you budget more efficiently.

Credit counselling and debt management plans can help you get back on track.

A debt management plan offers individuals an opportunity to make a single payment each month. If you have too much debt, consolidation or settlement may be the ideal solution.