There are thousands upon thousands of people in the UK looking for credit card debt management services as a result of excessive spending on plastic. But what should consumers be looking for when it comes to finding a solution to credit card woe?
Let’s start by defining exactly what a credit card debt management service is, as it can have a slightly broad meaning to some people. Simply put, it’s any method taken by the consumer to reduce the amount of credit card debt they have. We can break down these different services available for managing credit card debt by the amount of arrears that you have.
If you only have debts of around £500 then the best course of action you can take is probably to Cloud Services move your debt to a credit card that offers 0% interest on balance transfer for a set period. This means that every repayment you make goes towards nothing else but crushing your debt. If you’re paying bills on a credit card that charges 17.5% interest then this can suck up a large amount of your monthly repayment, taking away only a small amount of your debt.
The next step up is debts that go into the thousands or are spread across multiple credit cards. These will need more hands on management and serious thought if you want to fix the problem. You can take out a balance transfer as advised above, depending on your level of debt and circumstances. The other alternative is a debt consolidation loan. This is where you take all of your credit card debts and pay them off with one loan, leaving you with just one monthly repayment.
If you’re thinking of eliminating your credit card debt with a consolidation loan, then make sure you do all the working out as you can end up paying more for the one amount than all the smaller bills you had in the first place. A consolidation loan should reduce both your balance and workload.
The third level of credit card debt is where you are reaching into the tens of thousands of pounds. This is a pretty serious debt problem and one that might well require the help of professionals. There are a lot of debt management companies available and most offer a free consultation with no strings attached. It’s worth taking one of these, as they can review your specific case and advise appropriately. Don’t just jump at the first solution they offer you though. Make sure you consider everything they say and take a few days to think about your options.