When it comes to dealing with debt, many of us have different things on our mind and different ways to deal with the money that goes in and out of our account. If you have clocked up a lot of credit card debt, you aren’t alone, but this doesn’t mean that you should sit back and accept the situation. There is a need to find the solution that will help you improve your finances and the first step is to take consumer finance debt, such as credit card debt, seriously.
Recent findings from The Money Charity indicate that 460 transactions take place every second on credit cards in the UK. There is also findings that suggest the average adult in the UK owes £3,680 on credit. The findings also suggest that the level of individual debt is £780 higher than it was a year ago, which means that there is a need to review credit card debt and how we deal with it.
One problem with credit card debt is that many people feel they can survive on just paying the minimum amount every month. After all, there is a great deal said about the importance of never missing a payment, which makes many people think that, making the minimum payment is a positive thing. It is certainly better than missing a payment or making no payment at all but in the long run, paying off the minimum level every month isn’t going to help you reduce your debt or move your finances in the right direction.
You can get out of debt
If you are serious about getting out of debt, you need to be committed to paying more money every month because you’ll find that this will help you to make the most of your money in the long term. Paying less money now is sure to lead to a situation in the future when you end up paying a considerable amount of money to service debt or you just cannot keep up with the rising interest payments you have to deal with.
Some people are not considering this to be a major issue at the moment because credit limits are rising. If you fear or feel that you are approaching your credit limit, you’ll often find that the credit card companies are way ahead of you. This means that they will often be keen to provide you with a higher limit which means that you don’t need to worry about maxing out your credit card. Of course, when you borrow more money, the minimum payment each month gets higher and higher, which means you need to find even more money to stand still with respect to your finances.
Unless you really need a short term financial boost, you shouldn’t accept a rise in your credit limit. This is something that consumer finance companies are happy to promote and encourage but it will cause your problems in the long run. You need to be looking for a way to stay on top of your finances and when credit limits keep on spiralling upwards; you’ll find it difficult to stay in touch
Don’t look to raise your limit if you don’t have to
This is a huge bone of contention right now, with debt charities urging the financial regulator to curb unsolicited credit limit increases that simply add to the misery of problem debt. For now, simply refusing the increase could save you some significant financial heartache.
There is a great deal to be said for regularly reviewing your credit card options and determining if you can get a better deal. You should feel loyalty to a credit card company or consumer finance firm; they are not a football team. You owe it to yourself to find the best deal and you may find that there are balance transfer deals that will help you take better control of your debt.
There is a growing concern about credit card debt and the way that people don’t seem to take it too seriously. If you are looking for guidance when it comes to dealing with debt, you need to turn to the experts for support.
You don’t have to deal with debt by yourself and it is often best to speak to the professionals and obtain guidance from the experts. If you’re looking for specialist support when it comes to dealing with debt, there are always experts on hand.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.