Do You have Credit Card Debts?

In UK, one of the biggest reasons for personal debts is due to credit card debts which today stand at around 55 billion GBP. With more individuals today depending on credit and with the average interest being approximately 12% higher than base rate, it is not difficult to understand why debt has reached to this point.

Most individuals also have more than one credit card since they are very easily available. Also, most people also make just the minimum payment every month which quickly increases the debt on the cards.

The First Step

The vital thing to remember is that if you start to handle the situation as quickly as possible you would be able to get things under control. If you leave the issues for long, it would get from bad to worse. Contact the credit card company and explain your situation and they would be helpful to you. There are several ways in which you can deal with your credit card debts. A debt councilor would assess the situation and would come up with a course of action to help you so that you would be able to get back in shape.

List Your Priorities

Consider all your debts and decide which payments are your priorities. Your priorities should be the debts which could have a serious consequence if you do not pay them like electricity, gas, water and mortgage. Once you have decided your priority you can then sit down and decide how much you would be able to pay off.

Bailiffs

If you do not pay your debt and cannot reach an agreement with the issuer then the company might get a warrant of execution from courts so that they can send over bailiffs to recover properties from your residence in place of debts. You would be able to apply to court in order to have such warrants suspended.

These laws which govern bailiffs are quite complicated and if the company is threatening you with it, the best thing to do would be to get in touch with a specialist advisor. There are a few points, however, which you should keep in mind.

Bailiffs are not allowed to gain force entry into a debtors house and if you do not want, you don’t have to allow them in. However, as per the law, they are allowed on the property legally and can enter your house peacefully, like through an open window or unlocked door.

The bailiff would take the goods from your property and sell it at an auction to pay for the debt. However, they are not allowed to take basic household goods, bedding, furniture or clothing. 

Who Has a Serious Problem with Debt?

In UK, personal debt is a widespread problem. There are thousands of people who are trying to get help for their debt problems. Advice on credit debt is always given with discretion so you should not feel shy or embarrassed when asking for advice. Also, the services are usually free.

What are My Options?

In order to deal with credit debts, a councilor would suggest one of these: bankruptcy, an IVA, debt consolidation or a repayment plan directly with lenders. They would explain you all the options and the advantages and disadvantages of all of them.

What Should I Keep in Mind?

When applying for credit or loan, ensure that you read all the terms and conditions very carefully. Consumers today are warmed that some of the 0% balance transfer programs can actually get them into additional debt if they do not manage them properly.

Always think twice before taking a loan to pay your other debts and whether you would be able to afford the repayments. Several consolidation loans could be given to you against your house and failure to pay the repayments could mean that you can loose the house.

Bankruptcy should be considered only as the last resort since the consequences are long lasting and difficult.

Prepaid Cards

These are a good alternative to the traditional credit cards.