Credit Card Debt WILL Continue to Be a Problem


by Thomas Baugh - Date: 2007-01-26 - Word Count: 264 Share This!

Much of the £1 ¼ trillion of personal debt in the UK can be attributed to credit card debt with many people still spending well beyond their means.

According to figures from Credit Action, the average interest rate on credit card lending is currently 17.02% - a whopping 12% above base rate at the start of 2007. With rates that high, it becomes even more shocking to know that credit card balances bearing interest was 75.1% as of October last year.

But what's the best method for servicing credit card debt? One possible solution is a debt consolidation loan which might be even more tempting in the wake of increased mortgage repayments after the Bank of England's decision to raise the base rate once more.

Rolling up all of your outgoings into one interest friendly lump sum might be the best decision you make all year. But that's only if you manage to secure the right agreement that makes sound financial sense to you.

However, a debt consolidation loan can carry hidden costs such as fines from credit card companies for settling balances and transferring the debt.

If you have debts of over £15,000 of credit card debt you might even consider an Individual Voluntary Arrangement or IVA where by you wipe off a large sum of the money you owe, and repay the rest in set monthly installments. However, this is a measure that should only be considered in the most extreme cases.

Whatever your preference might be for servicing credit card debt, you can find useful information and links at the Credit Card Debt Site.

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Related Tags: consolidation, debt, finance, credit, bankruptcy, personal, interest, management, rate, iva, card, morgage, base

Thomas Baugh is the sole author of articles at footballopinion.com and writes content for a number of other sites. If you would like an article published at the footballopinion.com then send them to inspiredfreelance@gmail.com

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