How do I manage credit card debt?
Posted January 16th, 2009 Credit cards can be a really useful tool, but if you’re not careful, debts can pile up and you can end up with bad credit. Credit card debt management is pretty straightforward; you just need to make sure your incomings are less than your outgoings. But we’ve compiled a few tips below to point you in the right direction.
Credit card debt management
This is something you can do yourself, but first you need to cut up your cards, delete all your online shopping accounts and create a budget. There are a number of really useful budget applications, including quicken. But to be honest, Microsoft Excel does a perfectly reasonable job.
Credit Counselling
If you’re not confident in your ability or discipline in terms of debt management, there are many services that can help you out. Some of them are even free. The Citizens Advice Bureau is one such service, they provide free debt counselling and advice.
Debt Consolidation
One good option is to consolidate all of your debts into one loan; most financial institutions offer this to help manage debt. Make sure you destroy your cards if you do proceed with this
Beware of credit card debt management scams
Unscrupulous credit card companies can try to exploit people with bad credit ratings, by charging excessive fees and/or high rates. Make sure you read the fine print before you sign up to any card, and make sure you understand every aspect of what you’re signing up for, before you do it.
Other credit card debt management advice
There are a couple of other things you can do to manage your debt:
- Debt management is not magic; it takes hard work and commitment. Anything that seems too good to be true probably is.
- If you’re debt is spiralling, cut up your cards, straight away.
- Be sensible about your budgeting, allow yourself some small treats, otherwise your plan will be difficult to sustain
Good luck!
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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