Credit card debt is at a higher level than it has ever been before. We have all been forced to use our credit cards to make purchases of that would normally not be paid for on a credit card. Things like petrol and shopping have all gone up significantly since the credit crunch began, this in turn causes the increase in credit card debt that we have all experienced, this results in the increase in calls and emails we have received in recent months.
Credit card debt is very easy to build up, why?
After decades of record lending, banks have been forced to readjust their stance on credit cards. It has emerged that they have been issuing them without much regard for affordability to repay the credit card debt. Luckily for those who are now looking to get credit cards, the rules have been tightened and you must pass an affordability test in order to prove that you can pay back the credit card debt.
Credit cards do not work like secured loans do; they do not have set repayments or a fixed payment term. Many people do not understand that if you pay the minimum payment, it can take up to 16 years to clear your credit card debt. That calculation only works if you do not ever use your credit card again, if you continue to use it and build up what you owe, it can take longer.
A better way to pay off your credit card debt is to pay at least four times the minimum payment each month. It is unlikely that your bank will give you the best advice in this area as they earn money on your debt to them; as a result, there are a lot of people who have ended up with more credit card debt than they can clear in a reasonable time and need to seek professional advice.
Are you struggling with credit card debt? If so, you are in the right place. Delta Debt Management can help you clear your credit card debt and any other debt you have. Call us on 0800 988 8199 
or complete the short form on this page for more information.
What to do with credit card debt
Clearing your credit card debt is much tougher than getting it in the first place. If you choose to get professional debt help, Delta will consolidate your debt into one affordable monthly payment, we will not do this with a loan; you will not need to take out any additional credit. We will then take details of your income and expenditure and help you put together a financial plan and calculate your disposable income. This disposable income excludes all of your debt, credit cards, loans overdraft etc.
Al these debts will be paid in proportion to your creditors and you will only need to deal with us. Stopping all the phone calls and letters asking for things you cant afford.
All of our advice is FREE, to get more information on your next steps on how to clear your credit card debt, call us know on 0800 988 8199 or complete the form on this page.
Credit card debt consequences
As innocent as it seems, credit card debt can cause many problems for you in the future. The best piece of advice we can give is to deal with it as early as possible by speaking to someone.
Bankruptcy
Bankruptcy may mean that you will loose your home and your possessions. For credit card debt, there is usually something that we can do to help. For more information on bankruptcy please visit our bankruptcy information page. Or read on to see what we may be able to do to help.
Individual Voluntary Arrangement (IVA)
If you are considering bankruptcy then an IVA may be of considerable interest to you. Credit card debts of over £10,000 may qualify and this is a far better option than bankruptcy. For more information, please see our IVA page.
Debt management plans (DMP)
Debt management plans will help stop interest and charges on overdue credit card debt, they will also allow you to repay the debt in payments that you can afford. For more information, please see our debt management plans page.
Ways to avoid credit card debt
If you can follow these, you may be able to hep your credit card debt situation.
- Credit card provider loyalty – At the end of any interest free period, change to another card with an interest free period
- How many credit cards do you need – Do not get more credit cards than you need. In most cases one is enough
- Understand your card – Get professional advice to understand how credit card debt works
- Get advice from the right places – Only get advice from debt management companies accredited by DEMSA. DEMSA is the only debt advice regulator that is approved by the OFT.
- Do not overspend – don’t pay for thing on a credit card unless you know you can pay it off, it is not your money
- Do not miss payments – Set up a direct debit for as much as you can afford, not the minimum period
- Payment protection insurance – Do not get payment protection insurance, get it cancelled if you already have it and consider claiming back PPI already paid from a reputable PPI solicitor such as Martin Richardson LLP, not a claims management company.
- Wrong debt priorities – Treat credit card debt as a priority, it is expensive to not pay it off quickly
We are one of the largest debt advice companies in the UK and as members of DEMSA we have received OFT approval, which means that we can give the best advice to deal with credit card debt. Our fully trained staff are available to help you clear your credit card debt on 0800 988 9188.
Important Information About Our Service & Fees
Whilst we strive in all cases to negotiate the best deal with your creditors, we cannot guarantee a reduction in interest or charges. Also as one of the largest providers of debt management solutions in the UK, we are able to provide initial advice over the phone without charge, however, if a debt solution is taken out, please be aware that fees will be charged. We aim to keep these fees as low as possible and believe that we are very competitively priced, for detailed information on our fees, including examples for each product, please click this fees link.
Further Additional Information
What if you decide that I don't want to go ahead? - click here.
Will your credit rating be affected? - click here.
The insolvency service has produced a guide for people who are struggling with debt. This guide outlines each of the available solutions. You can download the guide by clicking the following link - In Debt? Dealing With Your Creditors.
If an IVA is not maintained it could lead to bankruptcy.