Five Steps to Avoiding Credit Card Debt Problems
1) Pay more than the minimum amount each month- if you owe just £3000 on an average UK credit card and simply maintain minimum payments it could take you more than 20 YEARS to pay off the balance
- to avoid a build up of debt try to pay off more than the minimum amount each month
- remember that the cheapest option is always to pay off the debt in a short a period of time as possible
- on most credit cards failing to pay the bill on time will incur some sort of penalty charge
- this penalty charge will be added on to your total bill meaning a larger minimum payment for next month
- try setting a deadline each month for paying bills to ensure that they are always paid on time
- if you are having difficulties then try contacting the credit card companies collection department and let them know. They may lower the interest rate in preference to you defaulting on the debt entirely
- if a different credit card company offers a better rate then negotiate with your existing company to see if they will better the offer
- using cash or debit cards instead of credit cards will stop debt building up
- limit use of your credit card to larger purchases
If you want to break out of the credit card debt spiral then call us today on 0800 043 50 43 for a FREE and confidential discussion on all your credit card consolidation options.