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If you’re not responsible for the debt and a credit card company is trying to make you pay, explain the situation and ask them to stop. If they don’t stop, you can complain to the Financial Ombudsman Service. They investigate complaints about banks and building societies and can make them stop.
- How Credit Cards Work
Credit cards are issued by banks, finance companies, and...
- How Credit Cards Work
How to check liability for a debt, including time limits on debts and how to challenge a debt you think you might not be liable for.
Overview and content list for credit cards. Get help if you're struggling to pay your card, how they work, choosing a supplier and understanding the costs.
- Don’T Ignore Your Debts
- Prioritise Credit Card Debts
- Keep Track
- Record How Much You Spend Everyday
- Sell Your Stuff
- Boost Your Income
- Snowballing Your Debts
- Get Rid of Your Credit Cards
The first thing you should do is tackle the problem head-on: ignoring your debts will only make it worse. Because credit cards have high interest rates, failing to make payments could lead to a situation where you end up paying interest on the interest you already owe.
Next you need to prioritise your credit card over any other debts or outgoings. It might seem like taking a step backwards to move forwards, but reducing repayments on other debts such as loans and overdrafts can free up some money to bring down your credit card balance. Once you’ve paid off your credit cards you can use the money to pay off your n...
It also helps to create a spreadsheet of your monthly outgoings, as you may be surprised to find out where you can save money. Shop around to see if you could purchase gas or electricity cheaper from another provider, and contact your mobile phone contractor to discuss cheaper tariffs.
Once you’ve minimised your monthly bills, take a look at how you can save money on everyday expenditure. Keep a diary for a week to see exactly how much money you spend on a daily basis. The odd takeaway coffee here and magazine there might not seem like a great expense, but added together these can have a significant impact on your outgoings. Work...
Unlike fixed term loan repayments schemes, there is no set limit to the maximum amount you can pay off your credit card each month. Have a look around your home to see if there are any valuable items you no longer use that you could put up for sale on an internet auction site or declutter your cupboards and hold a car boot sale. Use all the profits...
You might also want to consider increasing your monthly income by getting a part-time job or advertising your services for casual labour. A morning paper round, couple of shifts in the local pub or setting up a dog walking service can supplement your finances and give you more cash to put towards your debts. Be aware, however, that any income gaine...
If you have debts on more than one credit card, start by paying the smallest balance off first. This might not seem logical, but it will help you to get on top of your debts and keep you motivated. Keep paying the minimum payments on your other credit cards while pouring all your energies into clearing the one with the lowest balance. Once this has...
Finally, when you’re debt free, cut up your cards. Generally speaking we advise you to think carefully before closing a credit card account because it can have a negative effect on your credit rating, however chances are if you’re in major credit card debt your score will be fairly poor anyway. By cutting up your cards you won’t be tempted to use t...
Everything you need to know about persistent debt letters and how the new credit card rules could impact your repayments. Tackle long-term credit card debt with the help of MoneySavingExpert.
As of late 2023, the average credit card debt per household in the UK is approximately £2,363, with the total national credit card debt exceeding £67.9 billion . The highest average credit card debt is carried by individuals aged 25 to 34.
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As you have a number of credit cards in persistent debt, your card provider may advise that you should seek free debt advice, particularly if you have a number of other debt commitments, including household bills - free debt advice is available here.
