Credit cards allow you to spend money on credit, up to a preset limit. This limit can vary from several hundreds up to tens of thousands.
Each month you must make a minimum payment or risk a penalty and possibly a negative impact on your credit rating.
The best advice is to pay off the balance each month otherwise your balance shall incur interest.
Credit card consolidation is when you have multiple credit cards and balance transfer each balance to a single credit card.
Background to credit card consolidation
Many companies offer a 0% interest period for a set period of time. This can be advantageous when consolidating credit card debt.
However, there will be a balance transfer fee and the interest free period will stop after the 0% interest offer expires.
What are the options
MoneySavingExpert has an excellent diagram to demonstrate this problem:
Many people find personal loans a good option for paying off credit card debt as it prevents additional debt from interest being added.
However, if you’re struggling to make minimum payments, you should read on.
What if I am struggling with minimum payments?
If you are struggling to pay for basic outgoings like electricity, food, travel, mortgage or credit card minimums?
Or, other than your mortgage, have you debt which is bigger than a year’s after-tax salary?
If the answer to either of these applies to you, receiving debt advice should be a priority.
Can I get free advice?
WB Debtcare provide free and 100% confidential advice. Our staff are highly trained and UK based. You can meet our team here.
How to contact WB Debt Care
If you are interested in our alternative to credit card consolidation service, get in touch today.