Credit Cards and credit card debt

For a great many of us the money runs out before the month does and then the temptation to use our credit cards to pay the bills kicks in. This is the beginning of the debt spiral and just what the credit card companies are counting on.

When your next pay hits the bank part of it belongs to the credit card company. If you pay the full balance on time –Brilliant- you’ve used their money for free. However if you only pay the minimum they start to charge interest at very high rates.

To put this in perspective if you run your credit card bill up to £3000 then only pay the minimum on average you will pay them £8400 in order to clear the bill!

If you send your payment and it clears just 1 day late they will charge you between £15 and £18 every time it happens

If you pay 1 day late and you are also £1 over your agreed limit they will charge you between £30 and £36 every time it happens.

Is that a licence to print money or what?

Swapping to other cards that offer lower rates can be useful but after the cheap period is over what have you gained?

Using your credit card to make payments due on your loans is crazy because you are paying 2 lots of interest.

		Do you qualify for a home insulation grant or a gas central heating grant? If you are on qualifying benefits, tax credits or allowances, you may well be eligible for 100% funding. Click HERE.
Tell us your debt problem	Adverse Credit Mortgage specialist

Our debt expert, Wally Stone has over 20 years experience in dealing with personal debt.

County Court Judgments

If you fail to pay a creditor and don’t reply to their reminders there are several things that they can do.

If it is a secured debt for example, a hire purchase agreement they can repossess the goods without going to court if you have paid less than one third of the total sum. You will still have to pay the majority of the balance.[More..]

Bailiff harassment

Harassment of people in debt by creditors or their agents is a criminal offence under the Administration of Justice Act 1970.

It is often difficult to know what to do when you feel a creditor is not dealing with your account fairly. In order for you to identify what activities by your creditors may involve harassment and what can be done about the problem, this article outlines: [More..]

Credit Cards

Did you know...

According to a recent statement from the Citizens Advice Bureau, it could take 77 years on average for people asking for help with debt to get back into the black.

Britain's personal debt is increasing by £1 million every four minutes.

debt advice uk debt advice