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Simple Ways To Tackle Your Credit Card Debt


According to the Financial Conduct Authority (FCA), there are 4.1m Adults in the UK that are in financial difficulty, with many struggling with household debts.


The pressure to spend at Christmas fuels many debt issues and January can be the toughest financial month for many. So, if you’ve racked up a lot of credit card debt over the Christmas period and you’re worried about how you’ll pay it off, fear not, there are plenty of ways to tackle it and get on top of your finances in no time.


Raise your minimum payments

Maybe a little obvious, but often overlooked, the more you can pay off each month the quicker you will be able to clear the debt. By clearing your debts quicker you will also reduce the amount of interest you will pay on your balance.


Explore your options

By transferring your debt to a new card with a 0% balance transfer deal, you will be able to avoid paying interest for a set amount of time, allowing you to make a dent in the balance you owe. Though be aware, there is often a fee to transfer your balance, but often this will be worth it and you will save overall.


Prioritise

One of the best ways to speed up the progress of repaying debt is to reduce the amount of interest you are paying. If you have multiple credit cards, prioritise by paying off the balance of the card with the highest interest rate, moving on the next highest once that has been cleared.


Though it is extremely important that you make sure you are making at least your minimum payments on your remaining cards to avoid facing late fees.


Don’t bury your head in the sand

People ignore their credit card debt in a variety of ways. Perhaps you only pay the minimum balance each month, make late payments occasionally or have stopped paying altogether. All these habits fall under the umbrella of ignoring your debt.

Here are four major reasons why you shouldn’t ignore your credit card debt:

  1. Late payments hurt your credit score

  2. Your debt could end up in collections

  3. Carrying a balance is expensive

  4. Your relationships could feel the strain

These consequences are only the beginning. Instead of ignoring your credit card debt, it’s best to face it head on.

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Freeze Debt Ltd is registered in England and Wales. Registered Number 11842271. Incorporated in England and Wales, with company number 11842271 and having its registered office at Ambler House, Trevelyan Square, Leeds LS1 6ED.  Freeze Debt Ltd is an Appointed Representative of Blackberry Finance Limited. Our Firm Reference Number is 840092. You can check these details on the register: https://register.fca.org.uk.

Jason Peter Bowen is Authorised to Act as an Insolvency Practitioner, in the UK, by the Insolvency Practitioners Association, IP Number 22150. All Insolvency services are provided in partnership with The Debt Resolution Service. The Debt Resolution Service is registered in England and Wales. Registered Number12692223 and having its registered office at Mills Hill Works, Corbrook Road, Chadderton, Oldham, OL9 9SD.

 

Freeze Debt provides insolvency solutions to individuals throughout the UK. 

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