Credit Card Debt Help & Advice

What is credit card debt?

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.

Key facts about credit cards

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 credit card debt

Signs you may have too much debt

You’ve used one credit card to settle another balance
You’re missing or making late payments
You spend more than you earn
You rely on credit cards for everyday purchases
You’ve considered filing for bankruptcy

How to control debt

Establish spending rules and stick to them
Try and make at least the minimum payment each month
Consider seeking advice before opening new card accounts
Set up alerts or automatic payments
Avoid late fees and interest charges by paying on time

How to pay off credit card debt

Know what you can afford to pay each month and work out a budget
Set an amount aside to repay credit cards
Consider stopping using credit cards, so as to make it easier to pay off debt
Stay up to date with other priority bills/fines
Consider seeking free and impartial debt advice

Consider a debt management plan

Debt management plans may be able to reduce interest rates and give you affordable monthly payments based on your budget
Consolidate all your credit card debt payments into one single affordable payment each month
No loans are involved and your credit history is not a factor
Providing interest and charges are frozen, you may be able to clear your debts in a shorter time frame
Negotiations with creditors are handled by your debt management plan provider

What Bailiffs...

You’ve used one credit card to settle another balance
You’re missing or making late payments
You spend more than you earn
You rely on credit cards for everyday purchases
You’ve considered filing for bankruptcy

Establish spending rules and stick to them
Try and make at least the minimum payment each month
Consider seeking advice before opening new card accounts
Set up alerts or automatic payments
Avoid late fees and interest charges by paying on time

What Bailiffs...

Know what you can afford to pay each month and work out a budget
Set an amount aside to repay credit cards
Consider stopping using credit cards, so as to make it easier to pay off debt
Stay up to date with other priority bills/fines
Consider seeking free and impartial debt advice

Debt management plans may be able to reduce interest rates and give you affordable monthly payments based on your budget
Consolidate all your credit card debt payments into one single affordable payment each month
No loans are involved and your credit history is not a factor
Providing interest and charges are frozen, you may be able to clear your debts in a shorter time frame
Negotiations with creditors are handled by your debt management plan provider

How can I manage credit card debt?

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.

Final points to consider

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.