If you use your credit cards wisely, they can be helpful but they can also be an expensive way to borrow – and it can take a long time to settle the debt if you can’t pay the balance.
If you don’t settle the full amount by the due date each month, you’ll accumulate debt, with balances charged interest over time.
If you don’t meet the minimum payments, you will fall into arrears. Your lender will get in touch to demand payment and, if you’re unable to make this, your account will default. If you fail to settle the debt, it’s possible that enforcement action may be taken, including the use of debt collection agents and bailiffs. Failing to repay your debts may have an adverse impact on your credit score.
Credit card debt is unsecured and isn’t backed up by assets, such as your home or car.
If falling behind on payments, contact your provider to explain your situation and advise them of how much you’re able to afford per month
Affordable repayment plans and/or payment holidays are provided by many different creditors
A debt management plan can help you make affordable monthly payments
Credit card debt can affect your credit score
Managing your regular expenditure each month can help you budget for any sudden or unexpected purchases or bills, restricting the need to use a credit card. If possible, try to keep money aside in savings for these eventualities.
If you do find yourself in need of using a credit card, ensure you have enough disposable income to pay your minimum payments on time, each month. If you find that you are struggling to meet the minimum required payments, and have taken on too much credit card debt, there are debt solutions available that may assist in the repayment of what is owed. Speak to one of our friendly, professional advisors today who will be happy to discuss your circumstances.
Fresh Start UK has helped more than 12,000 people gain control of their finances and become debt-free. If you’re struggling with debt and finding it tough to keep up with your bills, speak to an advisor today.Get Started
It’s never pleasant dealing with unaffordable debt, particularly if you want to take control of your finances but don’t know how.
As a leading Debt Management Company, Fresh Start UK is perfectly placed to help. We have years of experience in dealing with creditors and helping customers manage their finances. If you’d like to find out more, get in touch with the experienced and professional team today.
Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.