Credit Card Debt

They suck us in, our credit cards. We should know better, of course; but they’re hard to ignore. Instant payment equates to instant gratification. But for some of us, it all adds up to a lot more misery a few weeks down the line. As a nation, our combined credit card debt averages out at £1000 per man, woman and child!

It’s true to say that our flexible friends have taken quite a hold. But why are we so mesmerized by credit? It’s not even as if it’s a global phenomenon. Wouldn’t happen in Japan. Seriously! In spite of the high-faluting, hi-tech image, it’s a cash based society – which means people pretty much have to live within their means. But over here in the UK, we don’t have those kinds of restrictions, and we don’t have those compunctions. And that’s probably why we account for over two thirds of credit card debt in the entire EU!

When we turn eighteen, we open ourselves up to offer after offer of free credit and unlimited buying power. It’s no wonder we’re susceptible. In the UK, buying power is not necessarily comparable with earning power. We buy on credit, in preference to cash purchases and debit transactions. And we keep buying. Our Christmas credit hangovers last a little longer each year, and have an exponential effect on our long term debts.

With credit debts rising and personal insolvencies going the same way, we’re taking ever more extreme measures to get ourselves out of debt. Re-mortgaging the house is the latest tactic for cash starved credit card debtors, desperate to settle the books.

But if we’re ever really going to tackle our credit card debt habits, there are some fundamentals we need to address. First and foremost: pay on time; every time. Every single late payment will result in interest charges stacking up on your account, dragging you deeper into debt by the day.

Even if you can’t afford to pay off a significant amount of your monthly bill, try to pay more than the minimum recommended amount. That way, at least you know you’re making inroads; you’re keeping your creditors happy and you’re getting into good habits, which will help you to pay off your debts quicker.If you’re having difficulties making your monthly repayments, call the credit card company. Start trading on some of that customer loyalty. See what they can do for you. Worst case scenario: you’ll be no worse off. More likely, they’ll be prepared to negotiate. After all, what are their options? Stick to their guns and risk everything, or re-think their strategy and get back to recouping their cash.

Besides, they’re not the only credit card company in town. Even if your credit rating has taken a battering, there may still be companies who’ll be prepared to make you an offer. What’s their best deal? Play one company off against another. Why not? Don’t be ashamed to be a ‘credit card tart.’ Think about switching your credit card debts to take advantage of 0% balance transfer offers. Alternatively you could make a ‘life of balance transfer’ to enjoy lower rates that won’t fluctuate, no matter how long it takes to repay your debts. You could be saving straight away!

Whilst you’re hardly likely to ever underestimate the debilitating effects that a credit card debt can have, you should try to remember that there are always solutions. Take a look at our pages on Good Debts & Bad Debts for some reassurances you can really bank on. Take a look through the pages on Debt Helplines, Debt Management and Debt Consolidation too. Then take another look at your credit card debt; things might not be quite so bad as you first thought.