Strict Budgeting the best way to pay off Credit Card Debt
Posted August 11th, 2009 In an amazing piece of insight, the Consumer Credit Counselling Service (CCCS), a financial advice charity, has said that the best way out of credit card debt is (wait for it) budgeting, and sticking to a budget.
Specifically they state that making “a strict and truthful budget” is the “first step” to getting out of credit card debt.
What is slightly insightful, and you should definitely be conscious of is their key sign of a consumer in financial difficulty is someone who withdraws cash from their credit card.
Further, they’ve revealed that an amazing 43% of people who are in serious debt are too scared to do anything about it. Indeed, fear is the number one cause of people’s reluctance to openly talk about their financial issues, a survey ran by the CCCS on talkaboutdebt.co.uk found out.
40% of respondants said that their debt issues were making it difficult to move on in their live.
“This stigmatism of debt also breeds mistrust – so people [...] find it hard to open up to or to trust a professional debt adviser”, said financial journalist Jessica Bown.
“The main concern is that while the fear factor is preventing people from talking about debt and seeking help, their debts continue to mount”, she added.
CCCS said consumers struggling with debt “need to take steps to confront [the] situation”.
The Citizens Advice Bureau recently revealed that is has received more than 400,000 queries in the last year from consumers struggling to pay back their credit card balances.
As we’ve always said, if you’re in trouble with your credit card debt, make a reasonable budget and stick to it. That’s you’re only option.
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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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