Credit card debt can be immensely worrying. However, there are options out there that can help you clear your unaffordable credit card debt and get back on track.
We will run through some debt solutions below that can provide short term relief to credit card debts. However, if you know you need professional help to clear your credit card debt, you can use our Online Debt Advice Tool, call us on 01925 599 400 or email info@angeladvance.co.uk
Credit card debt can feel overwhelming, especially when interest is added.
The first thing to do is stop spending on your credit card; it can even be worth cutting your card up to avoid temptation. After all, the debt will be harder to pay off if the amount you owe is rising.
Secondly, get a clear idea of your finances and work out what you can afford to pay off your credit card each month. Although paying off the minimum amount is a great starting point, this can mean you don’t pay off much more than your interest. Therefore, if you can allocate a bit more to paying off your bill each month, you will pay off your debts quicker.
A balance transfer credit card will allow you to take debt from one or more credit cards that you’re paying interest on and move it to another. This new card would offer 0% interest for a set time: usually ranging from 6 – 36 months. This can be a good option if you have the funds to pay off enough each month to clear the debt before the end of the interest period. However, if you are only making minimum payments then balance transfers can sadly prove a little futile. If you do opt for a balance transfer, do not spend on the new card as this will only generate more debt to pay off.
To find out more about balance transfers and how they can help with credit card debt, read our blog.
If you cannot meet the minimum payments to your credit card then it may be worth contacting your credit card provider.
In certain situations, creditors can offer payment holidays or increase your credit limit. However, it is worth noting that these options may damage your credit score, so make sure you check with your credit provider before signing up to any of these options.
All of the above options are good, short term solutions to reduce credit card debt. However, if you find yourself repeatedly getting into credit card debt, are relying on your credit card to pay for essentials like food and fuel or that the above options are not helping, it can be a sign of more persistent credit card debt
If this is the case then try not to worry, there is still help available. At Angel Advance we can provide expert credit card debt help and advice helping you to minimise payments and clear unaffordable credit card debt.
You can use our Online Debt Advice Tool, call us on 01925 599 400 or email info@angeladvance.co.uk
Does credit card debt affect my credit rating?
Yes, credit card debt directly affects your credit score and whether you will be approved for future loans, credit cards and a mortgage. As your credit card balance or miss payments fluctuates, as will your credit score.
What happens if I can’t pay credit card bills?
If you cannot pay your credit card’s minimum repayment, then your account will go into arrears. Following this, your creditor will demand the missing payments and, if you can’t pay, your account may go into default and, as a final resort, further action may be taken such as the employment debt collection agents.
Where can I find a balance transfer credit card?
You can approach lenders directly, or use the comparison websites available online such as:
How likely is it that my credit card could be suspended?
Credit card companies reserve the right to suspend your card if you consistently fail to make payments or if you have been in persistent debt for at least 36 months. However, credit card companies must also show forbearance and could freeze or waive interest and charges. Credit card companies must also contact you at 18 months of persistent credit card debt and continue to try and remedy the issue before reaching the card suspension stage.
