Help with credit card debts

17 September 2009

Missing debt repayments is never a good situation to be in - and the higher the interest rate on that debt, the more it could cost you.

Credit cards can be a particular problem. Many credit cards carry an interest rate of around 17-18% (although it can be higher), and that means if you miss payments, your debt could grow fast.

In a sense, despite their high interest rates, credit cards can be one of the easier kinds of debt to manage. They usually carry a fairly small minimum payment (a typical example being 3% of the outstanding balance or £10, whichever is higher), which should guarantee that the annual interest is covered by your repayments.

However, only making minimum payments could mean that your debt will take a long time to pay off - and if your debt problems have got so bad that you can`t even afford the minimum payments, you could even find yourself faced with action from your card provider.

If you`re struggling, it`s essential that you seek professional debt help.

What debt help is available for credit cards?

When you call a debt adviser, they will firstly want you to explain your situation - how much debt you are in, how many lenders you owe money to, how well you are managing to cover the repayments, etc. Based on this information, they can begin to help you find the right debt solution for your circumstances.

Some people find they can improve their situation simply by reorganising their finances properly. If your debt adviser thinks this is the case with you, they can help you to do this - by creating a budget, perhaps, or helping you to identify areas in which you could cut back.

If this doesn`t help, then your debt adviser may recommend a more specific debt solution. There are a number of debt solutions available, each of which is designed to help people in different situations.

For more information on a range of debt solutions, click here or call 0800 161 3516.

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