Most people will use credit cards for everyday spending particularly as the contact-less payment system has grown to include paying for small value items such as a coffee, glass of wine or a beer.
They are also used to pay for larger items such as furniture, TV’s etc which are then paid off over time.
Other times credit cards are used are when the guarantees offered by credit card companies are needed.  An example would be paying for a holiday where if the firm goes bust, the credit card company will refund the money to you.
That’s all good until changes in your life mean that you cant afford to pay the card debt and due to their high rates of interest, the debt grows quickly as soon spirals out of control.
With some management steps can be taken to help manage this debt.
If these aren’t possible or wont help due to constant pressure from creditors, there are further steps that can be taken with the help and support of Harrisons Business Rescue
The simple steps will include
  • ​Write down your budget based on what you have been spending over the last few months.  Use you bank and card statements are the starting point as they show what you have spent and not what you think you have spent.  That will ten show how much you have left each month to repay your debts.
  • ​Prioritise your debt payments.  Pay off essential items such as mortgage or rent debt, council tax bills for lighting and heating etc.  The essentials.  If you don’t pay these, the consequences may be more serious.
  • ​Pay off the most expensive debt first.  The card statements will show the interest rate being charged.
  • ​Pay off as much as you can afford and at least the minimum amount on each debt. Doing this will reduce the debt quicker than paying one card one month and then another the next.
  • ​​Get advice from a reputable source.  Not ‘Dave’ or ‘Sarah’ in the pub.  Harrisons Business Rescue, as licensed insolvency practitioners, can help you