Credit card debt was previously considered as a hardcore problem by financial experts. As soon as the early entry of bank cards into the money market, the “swipe and spend” culture created massive debt trouble for card owners. Credit card debt is one of the major debts that have impacted the economy in recent times, and its impact can be seen in millions of UK citizens filing for bankruptcy each year, instead of settling their debts through debt negotiation and debt management.
This article briefs on the various equipment to settle credit card debts. Credit card debt is an epidemic which doesn’t necessarily focus on those of a specific income bracket. Credit cards are actually high-interest financial products in disguise. Companies may well lend you money, but they get all of it back and then some by charging you fees, adding on penalty charges and high interest on your debt.
Finance fees on the unpaid portion of your bill can be as much as 25 % each month, and cash-advance fees have even higher interest rates. Once-a-year fees just to have the ability to carry the credit card in your wallet range from £20 to £100; there are also late payment fees, typically £25-£50 for each missed payment.
Very few of us have been trained to live within a budget or how to balance our check-books at the end of the calendar month.
We are blissfully ignorant of simply how much we owe on each of our credit card debts, or exactly what rate of ever increasing interest we are paying. We use our credit cards if we want to buy the latest fashion or perhaps enjoy a nice meal.
Paying a high interest on one or more credit cards could hinder you in your efforts to eliminate debt. It is because a huge chunk of your monthly installments will go towards paying off the interest only and not on the actual balance due. Contact your creditors and ask could they could reduce your interest rate, or you could apply for a low interest credit card and transfer all your balance.
By doing this, you can save a lot of money on paying off your credit card debt with potential savings running into the thousands of pounds!