Fighting debt is hard is you can’t breathe

To know how to effectively fight debt is knowing what can be done to get rid of it. Right now you are probably like a swimmer who can’t swim. You frequently come up for air but because you haven’t perfected the right stroke you struggle more than necessary. It’s hard to use your mind when the going is tough, often we go from bad to worse because we can’t see the sky for all the clouds hanging low.

Debt busters to reclaim your life

The following debt buster tips will help you to reclaim your life and pay off your credit card debt bit by bit.

• Find more cash flow to pay off more than the minimum each month: If you are serious about getting rid of your credit card debt (and you should be,) start by getting rid of luxuries first. Find money you didn’t think you had (like the languid coffees as the shop each morning, or the after-hours drink on Friday afternoon). You know best where you can give up certain luxuries and use them instead to pay off more on your credit card bill than the minimum each month.
• Use the debt snowball system: By paying off your biggest interest rate card first and then moving to the next one will help you to bring into effect what is also called the snowball system. Once it gathers momentum it will reduce your existing debt much faster than doing what you currently do.
• Consider a balance transfer card: Balance transfer cards are a great tool when you consider the snowball system. By transferring your existing high-interest debt to a lower interest or interest-free card you can take advantage of more savings while paying off your debt much faster. Many of these cards give you a honeymoon period, meaning you won’t have to pay any interest for at least six months.
• Get a line of credit for your home: If you have a mortgage and paid off some equity in your home then it might be possible to get a line of credit for it and draw against your existing equity in return for some cash to go into your credit card debt. As home loans usually attract a lower interest rate than credit cards this might be a way to save money while paying off your debt.
• Borrow money from family or friends: If you are in good standing with some friends or family someone might lend you money to pay off your credit card debt. Be aware that this could ruin a relationship. Wherever money is involved, problems are not far away.
• Negotiate a better deal with your creditors: Start with your creditors and try to negotiate a better deal for your debt. They might give you a better interest rate, remove it altogether for the time being or drop some of your debt if you can pay back a certain amount. It certainly helps to ask.
• If nothing else works, file for bankruptcy: This is nasty because it will affect your life for years to come. If there is any way possible, do not file for bankruptcy. Having said this, if the pressures of your debt becomes too much to handle bankrupcty is often the one way out promising peace of mind long-term.

As you can see, there are several ways to pay off your credit card debt if the mind is willing. Ask for help from a qualified professional if you can’t handle the stress by yourself. Many companies are there for this purpose.

Best credit card deals in the UK for balance transfer cards

A UK balance transfer card is ideal if you are looking for a good deal. There are literally hundreds of credit cards on the market and choosing one that is right often requires hours and days of research. This is frustrating because who in their right mind likes to calculate financial data anyway. We sure as hell don’t think you do, that’s why we have done the hard work for you and found the best credit card deals in the UK.

The following four cards have all made the short list out of the lot giving you more bang for your hard-earned buck:

• Virgin Money Credit Card MasterCard: Get a full 0% interest rate for 16 months with a low 2.98 per cent balance transfer fee. APR is 16.6% variable
• Halifax All in One Credit Card: 0% interest for 9 months with a 2.90 per cent balance transfer fee and a 15.9% variable APR
• Virgin Atlantic White Card: 0% interest for 6 months, 2.0 per cent balance transfer fee, 17.9% variable APR

Best card deals with Credit Card Finder UK

Let us help you by doing the research on your behalf. If the above cards are not what you need right now then just drop us a comment or email and we can comprise some research based on what you need.

Better deals on UK cards

Before you choose any credit card you need to understand card features first. The more you know about these, the better can you make an informed choice.

• Interest-free introductory period: These are commonly offered on balance transfer cards (see above) to allow you to pay off existing credit card debt without added pressures
• APR: This stands for annual percentage rate which is set by the Bank Of England. This rate is entirely dependant on the state of the economy. This is the interest you pay on your purchases whenever you use your card. Many cards come with an interest-free period of 44 or 55 days giving you more leeway to save money
• Cash back/Money back/Loyalty schemes: These are schemes introduced by lenders to give you incentives to use their cards. Some give you money back on purchases made while others give you vouchers, frequent flyer points and other gifts

It’s a matter of knowing the market

Getting the best credit card deals is only a matter of knowing what’s on the market and how each card refers to your needs. Once you understand the features and responsibilities with each card you can make an informed choice.

However, there are ways to get a credit card with bad credit

As with every situation there are always ways in which you can get approved for a new card, even if you currently have bad credit. The following tips should help you get a new card:

1. Consider applying for department store or small retail shop credit cards: These cards are often easier to come by and small stores especially are happy to give you a second chance because they need to make sales to survive. The secret here is to repay your expenses when the bill arrives. You want to pay back the minimum at least.
2. Apply for a secured credit card: This will require you to open a security savings account and maintain it to get a line of credit from your bank. Most banks will use a percentage of your savings as the line of credit for your credit card. This means you won’t be able to spend money you don’t have
3. Get a co-applicant with a good credit rating: While this is great for you, it might be tricky for the other person because by co-signing they risk their own good credit rating while dealing with you if you lack money management
4. Ask your existing bank: If you talk with your bank and show them how serious you are about getting rid of your existing debt you might be able to strike a deal. Consider applying for a balance transfer card which can help you kill ‘two birds with the one stone.’ Get approved for a new card and pay back your bad debt

Tips to avoid bad credit card debt in the first place

Not getting into credit card debt is the best thing you can do and the following tips will help you stay alert and in control.

1. Refuse the temptation: It is common for existing card holders to receive a bunch of credit card offers by mail every so often. Be wise and refuse the temptation. Having too many cards is a nightmare in the making.
2. Stick with the big boys: If you need to buy on credit, use the big name cards such as Visa or MasterCard and American Express. Store cards might be great to get fast credit, but mind their expensive interest rates!
3. Always pay your bills on time.
4. Consider a card with the best offer for you: Not all credit cards are equal. Try to sort through the hype and find the card with the best deal for your circumstances.
5. Frequently check your credit rating: You can apply for a copy of your credit report (usually for free) to see where you stand. It is advised you do this once a year.
6. Spend within your means: If you can’t afford it, don’t buy it. While this is often frustrating, it is the best defence against credit card debt.

Now you know how to get a credit card with bad credit you should be well informed on your chances and responsibilities.

How to get a credit card?

Paying your bills on time and not getting into debt is the number one way to get a good credit rating. Another way is to make sure your debt-to-income ratio is low.

For young people the best and fastest way to get a credit rating is by using a department store card. These cards are basically thrown at you from all angles and regardless where you shop these days, chances are there is a ready-card for you from that shop.

The dangers of department store cards: One danger that lurks with these cards is the exorbitant high interest rates. Store card interest rates are massive and unless you intend to pay off your purchase in full when the bill arrives, don’t even bother using them because they can just as well ruin your credit rating track record.

In the plight of getting your credit card application approved, reliability is everything. If the creditor (the lender) sees you are a responsible spender, your chances of getting approved are bigger.

Focus on these main qualifications

The following qualifications are a must to get your card application through successfully and are a good start for you:

• You need to be 18 years of age
• You need to be in a stable job with a stable income (many card companies look for an employment track record here,) especially if you apply for the first time
• It is an advantage to have an existing savings or checking account with some money saved
• Your monthly utility bills should be lower than half of your income
• To qualify for a MasterCard or Visa credit card your annual income needs to be around £5,000 minimum
• You should have your own telephone account

How to get a credit card isn’t as hard when you know what the lenders are looking for in the first place. By now you should have a good idea of what is expected of you to make your credit card application successful.

How to manage your credit card debt

The first step in credit card debt management is to understand your responsibilities i.e. what is expected of you by your card lender. Every card comes with its own deal and a common rule is that you have to pay off your card in full each month otherwise you are faced with expensive interest rate charges and penalty fees.

Once you are in debt the process becomes more serious and involves negotiations with your creditor. You can either do this by yourself or with the help of a qualified credit card debt management company.

What a credit card debt management plan can do for you

The company who helps you manage your debt will devise a debt management plan to help you pay off your debt in the quickest time frame possible. Here are some tasks they will do on your behalf:

• Contact your creditor (your card company) and negotiate a better deal; for example they could bargain for better interest rates, or even get them frozen for the time being allowing you to manage your card debt better
• Devise a payment plan that will allow you to distribute the money you can to all your debts in order of importance
• They will analyse the status of you as the debtor in regards to how many credit cards you owe, how big the debt is, your current employment situation and your income

Once they devise the right credit card debt management plan for you they will then work with you to help you get rid of your debt. The plan usually stays in operation until you clear your outstanding payments for good. Another description often used for this service is credit card consolidation.

Debt management tips to avoid/reduce credit card debt

Even so just about any debt can be tackled one way or another, it helps if you are acting in a responsible way to start with.

• Minimise the amount of credit cards you are using to minimise the dangers of credit card debt
• Only spend what you can afford
• If you are a compulsive spender, perhaps you should try credit card counselling
• Use a credit card with a low interest rate
• Consider a balance transfer card with a honeymoon (interest-free) period
• Get into the habit of checking your monthly credit card statements

Being informed and acting with responsibility is half the battle when it comes to credit card debt management.

If you’re thinking about transferring your credit card balance to a card like the Virgin Credit Card or the Halifax All in One Credit Card, then you can use our handy little tool belo

If you want to find the best offers for Balance transfers, check out our article.

If you’ve got no idea what we’re talking about, you can read our guide to Credit Card Balance Transfers.

How to use our Balance Transfer Calculator

1. Enter your interest rates and balances in the top half of the calculator
2. Input the interest rates and details of credit card you are looking to transfer to.
3. Stand back and look impressed at how much money you could be saving

Barclaycard said it will offer free debt advice and the option to reduce minimum payments.

However, financial journalist Tricia Phillips, of Your Money Questions Answered, thinks it’s a scam, designed to increase the profitability of Barclaycard: “The only winners from the scheme will be Barclaycard, as this is simply a way of reducing their exposure to bad debts.”

She also pointed out that reducing minimum payments will simply increase the time it takes for customers to clear their balance – increasing the overall interest paid and driving up Barclaycard’s profits.

To top this off, they’re also increasing the interest rates for customers who they perceive as at risk.

“In the second half of the year, there will be a limited number of price rises where we have a clear indication that potential risks have increased,” said Antony Jenkins, chief executive.

Nice one Jenkins.

Barclaycard offers are not particularly compelling, and if you’re unlucky enough to have dealt with the ‘customer service’ that they provide, you’ll no doubt be filled with murderous rage. If this sounds like you, it’s probably time to think about a credit card balance transfer. The Virgin Money Credit Card and the Halifax All in One Credit Card are the best deals on the market right now.

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.

“Facility takeover” fraud, which involves the remote hijacking of accounts, the most popular regions are Hertfordshire, London and Surrey.

David Clarke, detective superintendent at City of London Police, said: “The City of London Police welcome this report from CIFAS, which illustrates the seriousness of the situation with account takeovers and impersonation.

“The Force’s Fraud Review project team is working closely with CIFAS and other holders of fraud victim and offence data with a view to putting crime data such as these into the National Fraud Intelligence Bureau where they can be analysed and assessed and used to help fight fraud,” says Clarke.

Peter Hurst, chief executive of CIFAS, added: “CIFAS members and the police have viewed the rise in impersonations and account takeovers with concern and these figures help to highlight the areas with the highest number of victims.”

This type of crime is going to continue to rise, and while credit card companies will always work to mitigate the risks of these kinds of frauds, you should always be careful in revealing any personal information, and seriously consider investing in some kind of fraud protection insurance.

Although these plans are well intentioned, they will take time to implement; there is no silver bullet to save us from debt, so we’ve come up with three rules to help you manage your credit card debt.

Never take cash from a Credit Card

Your credit card is not a debit card, please never use it to take out money from a cash machine. Emergencies excepted obviously, real emergencies only. When you take cash out from your credit card, there is no interest free period, and you get charged from that moment at the highest rate. The same principles apply to credit card cheques. If you are doing either of these things, you’re handing money straight to the bank with no real benefit to you.

Have 2 credit cards, one for spending and one for debt

Keep your existing debts on a card with a long 0% balance transfer rate – the best at present is the Virgin Credit Card with a 16-month deal. Then use another separate card with a low APR for purchases – top of the tables is the, which offers 0% on purchases for 12 months.

Always pay off more than the minimum balance

Barclaycard recently announced a reduction on the minimum repayment on its credit cards from 2.25% to 1.5% of the outstanding balance. Under the original system, a £5,000 debt on a Barclaycard would take 31 years to repay if you were just making minimum repayments each month, accruing £5,900 worth of interest. The same amount paid back at the new minimum rate of 1.5% would take 98 years to pay back, with £22,300 interest accrued.

To avoid this lunacy, set up a regular payment system for as much as you can afford. This means you’re paying back as fast as you can and the proportion of debt you’re repaying increases with each payment.

If you’ve got a large amount of credit card debt, then it’s going to take a while to pay back, but with patience and a little extra work, you’ll be out of debt very soon.