Credit card companies agree to help struggling borrowers

28 November 2008

Credit card companies have agreed to do more to help people struggling to repay their debts, following a meeting with Business Secretary Peter Mandelson.

The companies are expected to report back to the Government in two weeks to agree on ‘fair principles’ with regard to customers in debt.

According to the BBC, the principles will include risk-based pricing – offering interest rates based on the perceived ‘risk’ of lending to each card holder. The companies will also give more leeway to credit card holders with debt problems, by suspending debt collections for 30 days, as long as they are working on a draft repayment plan with a debt advice company.

A spokesperson for debt management company Gregory Pennington said: “Credit card debts can be a severe burden, since the interest rates tend to be high compared with other forms of credit.

“For that reason, it’s essential that anyone struggling with credit card debts seeks professional debt advice early. The right type of debt management can make it much easier to clear their debts.”

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Gregory Pennington provide debt management plans as well as a number of other debt solutions. If you are worried about your debts, contact one of our expert debt advisers now.

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