Turn Debt Around

A report by uSwitch estimates that 4 million British women are in the grips of shopaholicism, resulting in unsecured debts of £13 billion.  Shopaholics have an average personal shopping debt of £3,353 - nearly three times the national average of £1,147.

74% use a combination of credit cards, store cards, overdrafts and loans to feed their addiction and 41% will ignore their overdraft limit to purchase a 'must have' item.

With PayPal estimating that one in every £10 will be spent online by 2012, we have pulled together some tips for online shopping to ensure that if you are purchasing over the internet, you're doing so safely and securely and getting the right price.

• Ensure you have anti-virus and anti-spyware software installed as well as a firewall
• Use an up to date web browser
• Compare the price of what you intend to buy using price comparison sites
• Shop with a reputable company (an easy way to do this is to type the name of the company and then the word 'review' into a search engine to read other customer experiences)
• Look for an address and a landline telephone number and a returns policy
• Ensure the web address of the page starts https:// before you enter any payment details
• Print out any receipts, order numbers and delivery dates as evidence of any transactions you make

For more information on secure online shopping visit consumerdirect.gov.uk

If you find yourself struggling with credit card debt or other repayments, contact us today.  We may be able to help you.

Source:  Credit Action - October edition

uSwitch estimate that 14 million consumers now use credit cards for day to day spending.  That's a lot of cards and a lot of debt and with most of us used to having access to available credit, are things likely to change in the future?

According to David Black, a Banking Specialist from Defaqto, it would appear so.  Things are getting tougher for providers as they face a number of hits on their credit card income streams including:

• the introduction of a £12 cap on default charges (e.g. if you go over your limit, make a late payment or your payment bounces)
• the decreasing numbers of people taking payment protection insurance
• prevention of fraud and security which is proving expensive

He goes on to predict that introductory 0% interest offers will become shorter and less readily available, reward schemes may be curtailed and annual fees may be introduced so perhaps we have seen the peak of the credit card market?

There will always be a need for credit cards, to pay for an unexpected bill or for another unforeseen circumstance, but it looks as if the credit card market as we know it today may look dramatically different sometime in the future.

Source:  bbc.co.uk and Credit Action - October edition

With the vast number of credit card companies out there, choosing the right credit card for you is sometimes easier said than done.

It is vital that you understand the terms and conditions for the credit card you choose to ensure you don't join the millions of people struggling with credit card debt.

We've outlined a few things to look out for:

Fees

Make sure you know how much you will be charged for late payments, failed direct debits, cash withdrawals and transactions when you're abroad.

APR

Many adverts for credit cards will promote a 'typical APR'.  This is not necessarily the APR you will pay.  A typical APR is the rate that the lender must offer to at least 66% of successful applicants, so if your credit history is less than perfect, you may be offered a higher APR.

Allocation of payments

Check to see what debt is paid off first when you're making your monthly repayments.  How much of your monthly repayment is allocated to any balance transfers?  Purchases?  Cash withdrawals?

Promotional rate

Inevitably, there will be a time limit on any promotional interest rate you are offered.  Ensure you diarise the date the promotional interest rate ends and shop around for another low rate credit card beforehand.

If you're struggling with credit card debt, you're not alone.  Contact us today, we can help.

It's true.  At the end of 2008, there were more credit cards in the UK than there were people according to APACS.  Today, the UK collective credit limit on credit cards is £158bn, that's an average credit card limit of £5,129 per person and with the average credit card interest rate sitting at 18.24%, it's not surprising that we have so many of the population getting into severe credit card debt.

Further research from Moneysupermarket.com unearths the extent of the problem:

• 1 in 5 of the UK population carries more than 3 credit cards
• 17% of credit card holders use their cards at least once a day
• 14 million consumers are using their credit cards to fund day to day expenses

Furthermore, in the next 24 hours, due to debt problems:

• 390 people will be declared insolvent or bankrupt
• The Citizens Advice Bureaus in England & Wales will deal with 9,500 new debt problems
• 219 mortgage possession claims will be issued

This increased reliance on credit cards means inevitably there is a high risk of many people getting into serious debt.  If you are in financial difficulty due to credit card debt or any other type of debt and you need help, talk to us.  Whether it is debt advice, a debt management plan or a more formal debt solution, we can find the right one for you and help you get back on the road to financial freedom.

All statistics were taken from Credit Action - May edition

According to Credit Action, research from moneysupermarket.com has discovered that at least 1 in 5 of us carries more than 3 credit cards and 17% of credit card holders use their credit card at least once a day.  So it is of little surprise that many of the customers who come to us for help, need a debt solution to help them cope with their credit card debt.

There are a number of reasons that people get into credit card debt including:

• Not prioritising debts - pay your most expensive credit card debt first
• Late or missing payments - charges for late or missing payments on top of your debt will just increase the amount you owe
• Overspending - spend within your means; buying something after you've saved for it feels so much better than just putting the purchase on a credit card
• Ignoring your debt - if you're reading this, you've recognised you need to turn your debt around and have taken the first step to tackling your credit card debt

Whatever the reason, you're not alone.  We have years of experience giving debt advice and helping people into debt solutions including protected trust deeds, debt management plans and IVAs to get our customers back on track to financial freedom.

Use our online enquiry form to see whether we can help you turn your credit card debt around.