If a credit card is used in the right way, it can be a useful tool for managing your finances. Unfortunately, too many people still don’t think they’re spending money when paying with plastic.
As a nation of spenders we’re addicted to credit cards. Figures from APACS show that in 2005 there were easily more credit cards than people in the UK – 74 million cards to a population of 59 million.
More worryingly, 95% of those credit cards in question had balances that were accumulating interest according to the British Bankers Association.
Not surprising then that more people are finding themselves with massive credit card debt. Fortunately, there is help available that can aid even the worst financial situation.
Obviously, the first step that needs to be taken is simple: Cut up the cards. Once the issue of spending has been resolved then the problem of credit card debt can be addressed.
You can also contact your creditors and tell them you are having trouble paying, but are trying to fix the problem. Creditors are often more lenient with penalties and interest fees in these cases.
As important as it is to face up to your problem and not just pretend it will somehow resolve itself, rushing into the first solution you come across can be a costly mistake.
Taking advantage of a free consultation with a skilled debt counsellor is advisable at this stage. They can outline the help available and go through the benefits of each possible solution.
There are a variety of choices available to you which might prove confusing without skilled advice. For example, you can set up an IVA to write off a massive amount of your debt in one swoop.
Debt Consolidation agreements which roll all of your existing debts into one monthly payment are widely advertised. However, these can have hidden costs and conditions written into the agreement.
Another option is a debt management programme where a company will take control of your debt for a set monthly cost. Like debt consolidation though, there can be hidden added expenses.
Even if bankruptcy is your preferred or seemingly only option, then a debt counsellor may still have a solution you hadn’t thought about or were even aware of for that matter.
If you’re in need of help with your credit card debt then don’t dive head first into making decisions before getting free advice from an independent and confidential third party
We have useful information to try to help you get over your credit card debt so take a look, hope it helps.