Dealing With Credit Card Debt
Dealing With Credit Card Debt
With debt levels in then UK reaching record highs, based mainly upon credit card debt, here at Help With debt we are getting many calls from people with credit card debt they can’t now pay.
Debt from credit cards grew rapidly in the 1990’s and 2000’s as major credit card companies raced each other for share of the credit card market. Big players such as MBNA credit card and Capital One credit card, seemed to give one or two credit cards to anyone who applied.
Of course a credit card is not a bad thing if you can make payments against it, but often, having access to easy credit with only minimum repayments to be made has been too much of a temptation for many people and many of those in debt who call us have up to 15 different cards which they have taken out as each previous card reached a limit.
The typical credit card debtor will have maxed out a number of cards and now will be unable to make payments against those cards. The problem will have come to a head as a result of card companies, withdrawing offers of new credit, cutting credit limits and despite falling interest rates, raising the cost of borrowing on those cards. This is a pernicious situation as the credit card companies know that the borrower with major credit already on their card, cannot get credit at a lower rate to pay the card off, and so are stuck paying interest sometimes up to 30%.
