Money and Debt Matters

Before a Problem?

It is important not to panic about loans, card problems and consolidation issues, but it is also more important not to ignore them. For many credit card statements, can be heart-stoppers. To pay off the your credit more quickly and efficiently, first and foremost stop using your credit cards. You are not going to make a dent in your credit until you stop making it worse.

Once you have stopped the financial bleeding, make at least double the minimum payment each month to start pushing the balance down. If you just pay the minimum amount of money, you are not going anywhere. You will need to free up money to help pay down accrued credit, cut down on nonessential spending then apply the money you save to card bills.

If you are facing payment for more than one card, pay the highest-rate cards first. Starting with a list of what is owed and the interest rate on each card.
 

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Having a Repayment Problem?

Contact each credit card company to negotiate a lower rate. Creditors will give customers with a good credit history a better rate to keep their business. Once you have rates as low , target the cards with the highest rates first, then work your way down the list. Look out for late payments. Creditors may tag payments received even one day after the due date with late fees as high as £20 or £40, and some companies may raise the interest rate on a card if payments are in arrears. Fees may also be large for accounts charged over the limit.

Whatever you do, do not ignore the situation.
You can get free help and advice from your local Citizens Advice Bureau or Trading Standards Department on credit consolidation and the alternatives. Some will have a Money Advice Centre which deal specifically with financial problems.
 
Another source of free advice and problem solving is the Consumer Credit Counselling Service, a charity which offers to liaise with creditors on your behalf and also provides counselling sessions to help you.

National Debtline offers a similar service, but will advise callers how to help themselves, rather than act as an intermediary.