Credit Card Debt Help & Advice

We do use Credit cards a lot lately. Paying for a big expenses when you need it and repaying the card later in smaller installments can be a great help when you are short of cash. They can be a great support when you have an unexpected situation at home or work.

The problem with credit cards is that people tend to overuse them for even small payments or cash withdrawals. There are fees and interest rates that are quite high for credit card payments so the user should be generally limited to the essentials.

To continue with, it is important to note that besides the fees that apply to borrow from a credit card is unsecured borrowing. What does that mean for you is that interest might start to accumulate if you do not pay the balance in the required deadline?

Average credit card debt

In the UK alone each household owes £2,568 to credit cards according to a recent study of Bank data. What this tells us is that the use of Credit cards is quite widespread and that individuals and families are using them for both small and large purchases every month.

Why using a Credit card can cause long term debt.

Although the Credit card is a simple borrowing mechanism that can truly be helpful it is easy to get all caught up in a vicious cycle of using all your salary to repay the card. If one is not careful the interest rates and fees will accumulate and get out of control. This might happen if you consistently cross the spending limit of your card which results in higher interest rates.

Using a credit card means you can pay the minimum balance when you do not have a large amount of cash in your hands. However, this will lead you to a long term debt which will then accumulate even more interest and fees.

Forgetting to make the minimum repayment or paying it late will lead to even more additional interest and charges onto your balance.

As a result of all the above, your final balance will keep on growing to make it harder and harder for you to repay. This might prove to be especially hard if unexpected events prevent you from repaying your debt.

How to manage your Credit card debt successfully

Some steps can make it a little easier for you to manage your debt successfully when it comes to Credit Cards.

Automated payments

Never miss a payment or a bill. Make sure to set up automated payments from your bank account and or your salary account. Paying all the bills in time means avoiding extra interest or hidden fees.

Plan and budget

It is important to have a clear view of your income as well as your monthly expenditures. This way you will be able to see how the Credit card payments fit into your monthly budget and plan your payment accordingly.

More payments

If during a specific month your income allows you to make and extra payment to your credit card. This will help you to repay your debt faster while saving you from interest rates.

Use another deal

If you’re struggling to pay your full balance, you can always find another way to borrow money with zero or lower interest. This way although you still owe the balance you will have less interest rate to pay or lower fees to your debt.

All in one

If you are the owner of more than one card or more than one debts than it might be wise to consolidate all your smaller payments into a bigger one. This will help you at least reduce the interest rates from each debt or card which tends to accumulate.

Get the debt written off

If you are struggling to pay your credit card debts there are various options here to help you write them off. If you live in England, Wales or Northern Ireland, you could benefit from an Individual voluntary arrangement (IVA)

However, if you find it difficult to make minimum payments to your Credit card you should call one of our advisors to work with you and solve together with your financial problems.

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Customers can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from the Money Advice Service visit MAS is part of the Money & Pensions Service. We are not affiliated with MAS in any way.

Become Debt Free is a trading style of Re10 (Finance) Limited Registered Number 04651137.  Data Protection Act Registration Number – Z8613095

Become Debt Free specialise in providing and administering Individual Voluntary Arrangement (“IVA”) solutions to individuals based in England, Wales and Northern Ireland.  We do not administer Debt Management Plans, Debt Relief Orders, or any other debt solutions.  We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meets the criteria for an IVA, therefore, all advice is given in reasonable contemplation of an insolvency appointment.

* To qualify for debt write off in an IVA with us, you must have a minimum of £7,000 of qualifying unsecured debt owed to two or more creditors.  The amount of debt write off is based on your own personal circumstances – typically this could be up to 85% of what you owe; and this has been achieved by over 10% of our customers who have successfully completed their IVA’s in the last 12 months.  The amount of debt write off differs for each customer and is dependent upon their individual financial circumstances and subject to the approval of their creditors.

Andrew Bowers is authorised in the UK to act as Insolvency Practitioner by the Insolvency Practitioners Association.


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