Credit card debt is a problem for many households; with spiralling cost of living and not enough income can mean that many people turn to credit cards to help pay for the basic living expenses.
It is possible to move forward away from credit card debt, there are different options open and it will depend on your personal circumstances as to the best option for your individual needs.
Credit card debt is an example of unsecured consumer debt
Credit card consolidation
If you are thinking about consolidation it is an idea to look at all options available. There are ways that you can put all credit card debt into a loan or even on another credit card. All options have their benefits and it will depend on personal circumstances which option is right for you.
Taking out a loan
This type of consolidation requires you to apply for a loan. If you are looking to get the best possible deal it is important you haven’t missed any payments on your debt, because this will be reflected in your credit file and it could increase the interest rate offered as well as reduce the chances of acceptance.
Before signing any deal make sure the monthly payment is low and the length of term is acceptable. It is important that you consider not using your credit cards again or only use them if you have the money available, otherwise in a few years’ time you might be back looking for another consolidation loan.
It is possible to perform a balance transfer to another credit card; this move is sometimes a great way to tie in an amount on a 0% interest deal for a period. However, remember that there is normally a transfer fee too; this can sometimes form a significant addition to the amount of the transfer, it is sometimes cheaper to go for a low rate of interest and have no transfer fee. You have to work out the cheaper option for your own circumstances; it will depend on the amount of the transfer and the length of time that the offer is valid.
Talk to the credit card company
If you talk to your provider they might be able to help. It is sometimes possible to get the interest rate of your card reduced or late payment fees removed. But you will need to negotiate the terms and conditions of these changes with the company; it is possible that they will say no. However, if you explain that you would consider moving company and taking the debt they might offer you a better deal than you are currently getting to keep you as a customer.
If you are in a situation where you are struggling to pay back your credit card debt then it is important to seek financial advice. It is not something that you should discuss with your bank, often they have selling targets and the advice offered might not be in your best interest.
A great option is to visit your local Citizens Advice Bureau, here they can help you move forward. Alternatively Age UK have plenty of information on their site that could help you to get out of credit card debt, and other forms of financial problems.