Millions of people these days have taken advantage of the many different deals on credit cards UK companies are offering, and most manage to use their credit cards without any trouble. However, it is very easy to get yourself into debt using your credit card if you aren’t careful, but all is not lost if you do find yourself in financial problems.
Step 1 – Admit that you have debt problems
There is a big difference between having debts that you can afford to pay off in a couple of months and having debt that you cannot see any way you will be able to clear in a few years. If the second circumstance – having a huge credit card balance and not earning anywhere near enough to pay it off – applies to you, you need to be honest about it. Too many people have their heads in the sand about credit card debt, but if you can admit that you have debt problems and that you need to take action, you will have taken the vital first step.
Step 2 – Get a realistic picture of your debts
Add up all of your credit card debt, plus interest payments, and compare it to your income. This will tell you how much you owe and how much you can afford to pay off each month as part of a repayment plan. Once you have a birds eye view of all of your debt you can make an educated assessment on what to do next. Continue Reading →