How is credit card debt paid back?

BenAnswers2

Hello,
Am very new to credit cards as I have only had a debit card. My question is, when you use a credit card to fund purchases, how is the debt paid off?
Do you make a bank transfer to the company which provides the credit card every month and then the debt is wiped off? How do you know how much to pay?
How exactly does it work?
Thanks,
Ben

[Deleted User]

Your statements tell you how much to pay, by when and by what means.

18cc

The best most reliable way is to set up a direct debit with your current account - the credit card will then take the exact amount owed each month and you don't have to worry about getting it right or forgetting or anything

18cc

If you don't want to set up a direct debit then you can pay them manually
methods include posting them a cheque, logging on to your current account and sending a faster payment to them or calling them up and give him your debit card details and telling them how much you want them to take off the debit card

I believe some cards you can even pay cash at the bank

Finchy2018

You can also usually pay using your card details on the app of the credit card you have if you register for online Serivces.

Chandelier.

There are several ways..

- Set up a direct debit to pay in full, so you always pay on time.
- Set up a standing order for a set amount.
- Use faster payments to make a manual payment.
- Use the app/internet banking related to your credit card and make a manual payment using a debit card.
- Send a cheque (although I think this is becoming less then frequent option due to other ways to pay).

I think it is sensible to look at the reason you are using credit and to choose the best option for you. Is it to take advantage of buying something on a 0% option which you can spread payments across or for general day to day spends that you intend to pay off straight away, to build up credit history?

I believe if used properly, credit cards can be beneficial- there are different ones for different things. One of the things to be aware of is that the interest charges can prove to be very expensive and if not dealt with, there is the potential to lead yourself into the debt trap and you may find yourself stuck between a rock and a hard place.

Have a really good think if credit is for you. Take a look at the guides on the MSE website and on these boards before jumping into anything. Educate yourself on how they work and remember to read the T&Cs.

All the best.