http://www.flickr.com/photos/baptistefranchinaDo you have credit card debt problems?
One of the biggest contributors to personal debt in the UK is credit card debt; it stands at approximately £55 billion. With more and more of us relying on credit, and considering that the average interest is around 12% higher than the base rate, it's easy to see how debt has reached this level.
Most people have more than one card too - they're so easily available. Many will only make minimum payments as their debt increases, meaning the interest that accumulates quickly cancels out these payments and the debt mounts up.
What's the first step?
The most important thing is to start tackling the issue as soon as possible, the longer you leave it the worse it will get. Contact the companies you are in debt to, and explain that you are having difficulties; they will be more helpful if you contact them sooner rather than later. There are ways to start dealing with credit card debt; professional debt councilors (like the Citizens Advice Bureau) will assess your situation and help you to plan the best course of action together you should be able to find a solution to get you back on the right track.
Sort out your priorities
Go over all your debts and decide on the ones for which payment is a priority, meaning, one which will have serious consequences if left unpaid, like a mortgage, water, gas and electricity. Once you have done this, you can then look at how much you can realistically pay off.
Source
Thousands of people face a financial dilemma in some point of their lives. The dilemma can seem astounding. But generally, it can be overcome. No matter how hopeless you think your situation is, it doesn't mean that it will worsen. It is just a matter of settling all your debts and foregoing all unnecessary expenses. You now know the advantages of owning a credit card from my previous post (see here), so if you decide to own a credit card, you must use it for its advantages and not for your pleasure.
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