Credit card debt is reaching epidemic proportions in the UK in the early part of the twenty first century. This is primarily due to low interest rates in the UK that are prompting people to borrow dangerously high amounts of money, amounts that they may be unable to pay back if interest rates rise. Now that interest rates are rising people are struggling to repay their debt. Masses of people need good credit card debt advice.
How to manage a credit card debt
Pay your full credit card debt balance on time each month if at all possible.
If you cannot repay the full balance then at least make some payment on time each month, no matter how small, but do try to pay the minimum payment requested. Late fees charged to your card are prohibitive. Also, each time you are late with a payment the credit card company reports it to a company responsible for compiling your credit report. A poor credit report can make it harder for you to gain further credit in future.
Choose a low interest rate card. Many cards offer low interest rates to new customers and to accounts transferred from other cards. While the low rate will only be for a short period you can materially benefit. When the low-rate period ends switch to another low rate card.
If you can’t afford it don’t buy it. This is the hard one and this is how people end up with bad debt. Buying on a credit card is so easy you can forget that every penny needs to be paid back, often plus interest. Spend carefully. Treat every purchase like you are parting with your cash. Avoid falling into the credit card debt trap.
MoneySolve can help you solve your credit card debt.