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There are many pitfalls associated with credit cards the primary on in most peoples minds being that they never seem to get paid off.

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Well other than the sky high interest rates I agree this is the biggest problem with credit card debt. However most people see the temptation to keep spending as the reason why the debt does not reduce. The problem is in fact far deeper than this, the very way in which credit card repayments are structured is such that payments will continue for many many years.

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Let me explain:-

Firstly most credit cards have a minimum repayment of just 3% of the outstanding balance per month as a minimum payment, now with interest charges running at an average of 15.9% it is plain to see that not a great deal of impact will be made each month.

Now for the biggy, most cards have a minimum payment in £'s as well put both of these things together and a balance of £5,000 at 15.9% APR with minimum payment of 3% or £10 would take 205 months to repay yep that's over 17 years with interest of over £3,800 if the minimum monthly payment is reduced to 2% or £5 as is available on an increasing number of cards the figures are 525 months or just over 43 years with interest charges at just under £9,500. This by the way is without ever using the card again and without ever getting a late payment fee.

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Ok so we can see that our credit cards can be a wallet drainer but how can we avoid this.

1. Pay off balances with more than the minimum payment.

2. make sure you never incur late payment fees.

3. only use credit cards in an emergency

4. If you are struggling to pay get the help of a credit card debt management company such as creditrepairuk.co.uk