No debt problem is easy to get out of, but when it comes to credit card debt, clearing your debts can be particularly difficult. With the average interest rate on a credit card currently standing at around 18%, unpaid credit card debt can grow very quickly – and in many cases, it’s not long before those debts become unmanageable.
How serious is unpaid credit card debt?
Because credit cards tend to have one of the highest interest rates of any kind of debt, the debt can grow very quickly, even if you are meeting all your minimum monthly payments (often around 3% of the balance or £10, whichever is higher). While your minimum payments will usually add up to more than you’ll be charged in interest each year, the difference between the two is likely to be so small that it could take many years (or even decades) to pay off the full amount – unless you decide to repay more than the minimum payment. Of course, not everyone is in a position to do this, and that’s where the problems can begin. And if you can’t even afford the minimum repayments, your problems could become a lot worse. You’re likely to be charged a penalty fee for each payment you miss, and if you repeatedly miss payments, you could even face court action from your card provider. However serious your situation is, if you find yourself struggling, you should get professional debt advice.
Get help with credit card debt
An expert debt adviser can help you to find the best way of clearing your credit card debts. There are a number of debt solutions available to help people in various situations and with different levels of debt. Even if you can’t see yourself ever being able to repay your full credit card balance, a debt adviser could help you to find a suitable solution.
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