The increasing credit card debt in UK

Credit card debt is has a great influence on the increasing debt problems in the UK.

08:06 03 October 2013

When you find it hard to control how you spend using your credit card, and consequently having a lot of trouble trying to make repayments, soon you will find yourself drowning in your credit card debt.

Credit card debt has been a big contributor to the increasing overall finance problems in UK. The general public is having a hard time in making repayments due to their overspending tendencies. But trying to reduce their credit card debt has been next to impossible. 

Interest Charges on Credit Card

With a big credit card debt and repayments looming, sometimes just the minimum payment is paid, but how can the credit card debt be reduced especially when the interest has also been charged?  Most of the payment just covered the interest; thus it would take a much longer time to actually repay the full amount of your credit card debt.

Adding to the dilemma is the cost of credit on plastic which can also be expensive, especially that interest rates are about 18% above the base rate.

How to reduce your credit card debt

• Avoid paying just the minimum amount allowed every month since it is just like you pay only the interest of your credit card debt. As much as possible, pay more than what is necessary to pay for that month so that your debt will be reduced.

 

• Likewise, avoid missing on payments because there will be penalty charges which will be added to your account. You have been struggling already with making repayments, having additional charges is the least that you need at this time. If you know you won’t be able to make a monthly payment, it is best that you contact your provider so they may suggest a payment scheme which could work for both sides.