moneybasics UK : Borrowing Money : Credit Cards : Managing Credit Card Spending

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It is important to manage spending on credit cards and to make regular repayments to avoid getting into financial difficulty. Deciding the amount to pay off every month (you can pay more than the minimum amount) and setting a credit limit are two ways you can manage your card.

What is the minimum payment?

The minimum payment is the minimum amount you have to pay off each month on your account. For example if your balance is £1,000, the minimum payment would probably be in the region of £25. However, if you only ever pay the minimum payment it will take a long time to pay off the amount you owe and cost you more.

Monitoring your credit limit

All credit cards have a credit limit which is the maximum balance you are allowed to have on your card.
The credit limit is fixed for you when you first apply for a credit card. That amount is shown on your monthly statement.
Check your credit limit on a regular basis as sometimes credit card issuers will change your credit limit by putting a notice that they have done so on your statement.
You can reduce your credit limit anytime by contacting your issuer.

Further information

Please contact your credit card supplier to obtain details of fees and charges.

Try the FSA's Debt Test to find out whether you have - or are likely to have - problems with your borrowing.

Take a look at the FSA's Financial Health Check to find out tips for a healthier financial lifestyle - now and in the future.