Credit Card Debt - Write Off Credit Card Debts

Struggling with credit card debt? Unsure what route to take?

In this article, we will aim to give you debt advice and guide you in the right direction to get on top of your debts.

Continue reading to find out more!

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Table of Content

1 What to do if you cant pay
2 How do I pay my credit card debt?
3 Can I be taken to court over it?
4 Is there any way I can negotiate credit card debt?
5 How will credit card debt affect my credit score?
6 What are the minimum payments for credit cards?
7 Help with credit card debts
8 Summary
9 Credit Card Debt Help Information
10 Other Debt Solutions

What to do if you cant pay

If you don’t pay the minimum payment you will end up going into arrears.

This means a part of your debt is overdue and needs to be paid as soon as possible.

If this happens you will be contacted by your lender and the payments will be demanded.

After you have been contacted if you have still not paid the lender they will ask for a default notice.

This is a letter from your creditor warning that your account is about to default because you’re behind with your payments. This can affect your credit rating and be put on your credit file.

If you still don’t pay after that they can employ debt agents to recover the money you owe.

How do I pay my credit card debt?

The best thing to do is revise how much you can afford to pay every month and work out your budget. Try and turn it into a monthly plan you can follow.

If you can put a certain amount away every month into a separate account such as a savings account, this will set you up on the right track.

Another thing to do is stop using your credit card, even just for a short amount of time. Since this would just add to what you owe and the debt will never be paid off.

Whilst keeping on top of your credit card debt, you must also continue to keep on top of your council tax bills and any fines you may have.

You can also transfer the balance from another card to help you pay off your debt faster, but if you don’t have a good credit rating you cannot rely on balance transfers.

Can I be taken to court over it?

This is something that many people worry about when it comes to credit card debt, credit card companies do not tend to take legal action to this extent.

They will only issue a court action if it’s a certain type of debt such as a criminal fine or government debt and this is even a lost resort.

If a creditor does threaten you with this you should consider complaining about them since this is not the standard procedure for credit card debt.

Is there any way I can negotiate credit card debt?

Credit card debt can be negotiated with your creditor if you are struggling to pay your credit card bills.

You can contact them to explain your situation and tell them how much you can afford to pay, and they will most likely agree to the payment plan since the debt is still being paid.

A debt management plan is the best way to manage your debts since it gets you in the routine of making monthly payments that suit your budget.

Some creditors will even accept a full and final settlement, which is essentially paying less than what you originally owed if you have the funds available to make a prompt payment.

Did You Know You Can Write Off Up To 85% Of Your Debts?

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How will credit card debt affect my credit score?

Your credit card providers will share that you have an outstanding credit card balance with credit reference agencies and this will update your credit score.

This information is shared to help other creditors decide how much of a risk it would be to lend any money to you in future circumstances.

A credit file states the balance you owe, your payment history, and if the account had defaulted.

What are the minimum payments for credit cards?

Any credit card has a minimum payment amount you have to pay back each month.

It is usually a percentage of what you owe, so it would usually be around 1-3%, usually, there’s a minimum amount of £5 to pay.

If your payments cover more interest and charges than your actual credit card balance for 18 months it would be classed as persistent debt.

This may result in your credit card company increasing your monthly payments.

However, some credit card companies are changing their terms and conditions to increase the minimum payment to be able to get customers out of persistent debt.

Help with credit card debts

Creditors will offer you help if you are struggling to pay credit card bills, they can do this by:

Offering credit card payment holidays for up to three months. This will not affect your credit score during this time.

They can also increase credit card limits, however, this could have long-term impacts on your credit file.

If you are on a debt solution taking out any extra credit could go against the terms of your agreement. It is best to speak to your debt solution provider before considering this.

There is always a way to pay off your debt, and there is a way to get a good credit rating back.

Summary

Paying off credit card debt has never been easier, there is a lot of support out there including a money advice service, speaking directly to your credit card provider, or seeking debt advice.

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If you are struggling to pay credit card bills speaking to your creditor is always the best thing to do and they will work around your monthly budget.

Most credit card providers will let you pay less than what you owe if you have the funds available to pay a lump sum.

Overall, there are many ways to pay your credit card debt with a monthly payment that suits your budget.