Here at Help With Debt we take calls from some of the people who hold the estimated 2 million store cards. They are often struggling to meet the monthly commitments on these cards, due to the high interest rates charged.
One of our solutions to this type of debt is debt management. This is a simple and effective method for combining all your debt from store cards and credit cards and loans, and then paying one simple monthly payment via a debt management company to all your creditors.
The advantages of debt management are:
You only pay what you can afford from your disposable income
You only make one payment each month not a number
All chasing calls will eventually cease
Interest and charges can be stopped
You will only clear the existing balance meaning the debt reduces
You can change your payments to reflect your disposable income
You can start and stop to suit you
You are not tied into arrangements for 60 months
You do not have to go bankrupt
Your house and car are not at risk
Store card debt can be useful for one off purchases, where you can then clear the debt at the end of the interest free period. If however you have run up debt and not paid off the balances and you cannot now do so, consider the debt management option as a viable way to deal with your debt problem.
About the Author:
Contact Steve Thatcher of Help With Debt (UK) Limited a total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
If you have any debt problem whatsover either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406
]]>It can seem very tempting to take up the offer of a store card for a significant purchase. When in store the sales staff are very keen to get you to take up their cards and so you will find them coupled with a free gift or a discount. This is because the commission earned by the staff is very lucrative to them, and the profits earned by the store on the commission can be huge.
In the UK interest rates are currently at 0.5% (Nov 2009). Interest rates on store cards are at 30% plus. It is one of the most expensive forms of borrowing you can now take out. It is a great idea if you can take a card and get 20% off your purchase, use six weeks interest free before making a payment to clear in full. The store bank on the evidence of usage that they have accumulated that you will not.
It will not take very long for a small debt attracting interest at 30% to build into a problem debt. This debt will usually be on top of other debt such as personal loans, and credit card debt. One solution to paying down all these debts at an affordable level will be the Individual Voluntary Arrangement.
The IVA has the following advantages:-
The arrangement lasts only 60 months and so has a definite time frame.
You only pay into the arrangement what you can afford, and this is set at the outset
It is possible to vary the amount paid with the agreement of your creditors
It is possible to offer a lump sum full and final settlement
The arrangement is supervised by a qualified insolvency professional
If the arrangement is completed, then any money still owed is written off leaving you debt free.
You are not allowed to get further credit and further into debt during the arrangement
You are allowed to keep your house, but you may have to introduce equity into the arrangement if you have any
The fees for the arrangement are taken out of the money you pay in, by agreement with your creditors, so there are no hidden fees on top
The IVA is usually available only to those with debts over £15,000 and disposable income in excess of £150.
About the Author:
Contact Steve Thatcher of Help With Debt (UK) Limited a total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
If you have any debt problem whatsover either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406
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Britain’s shoppers are addicted to store cards. Some 11 million of these have been issued or are in circulation at the present time. Store cards are pushed very hard by the stores because they attract loyalty and they generate huge revenue. Up to 2 billion may be outstanding and owing on store cards at any one time. Take advantage of our free store card debt helpline if you have store card debt you cannot pay off.
Expensive
The store card is a branded credit option provided by some of the high streets biggest names, but this form of borrowing is very expensive indeed. At the time of writing interest rates are at an all time low of 0.5%. Even if you are coming to this later and rates have changed, they will never be close to the 30% plus rate of interest that store cards charge.
Advantages
This list is small for a reason. They are not good value. Ok if you are the type of person who can clear the card in full at the end of the interest free period they are ok to use. The percentage of people that use a store card and do not pay interest is very small.
You may get a discount of you sign up for a card on the initial purchase. You may also get interim deals, but if you are paying interest, these will be worthless countered against the interest you will be paying.
Disadvantages
They are easy to take out. This is not an advantage, as the UK is already awash with credit that the country is struggling to pay back and even more store card credit cannot help that situation.
An offer not to pay back the debt for six months may be attractive, especially if you really can’t afford to make a payment in six months time. However, realistically can you make payment in six months? How much other credit have you also taken out that must be paid back in six months?
Staff who promote these cards get a decent commission for each one placed. Ask your self in whose interest it is to take the card.
The interest rate is enormous. Can you afford to pay 30% interest. The item you purchased can become very expensive indeed, if the balance is not cleared straight away.
If you have storecard debt that you cannot pay, and along with other debt such as unsecured loans and credit cards, you are having debt problems, we can help with a debt solution for your store cards and other debts.
We can offer debt management, which will enable you to pay what you can afford off your debts and interest and charges may also cease. The phone will not ring from debt collectors if this option is taken out.
We can offer IVA’s which will enable a large chunk of the debt, maybe up to 75% to be written off, if you complete the IVA.
Finally Bankruptcy is also an option for many people now, if they have little or no assets, and wish to become debt free overnight.
About the Author:
Contact Steve Thatcher of Help With Debt (UK) Limited a total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
If you have any debt problem whatsover either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406
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