If you’re facing unwanted credit card debt, you’re not alone. It’s the easiest debt to lose control over and can often be the hardest to to get under control given high interest rates.
Before applying for a credit card, you need to understand how it works. Credit cards are a useful tool that allows you to carry less cash and make payments online, however, they can come at a cost if you spend more than you can repay.
What to do if you can’t afford your credit card repayments?
- Contact your credit provider as soon as you become aware of the issue. They might be able to organise an agreed repayment plan until your financial situation improves.
- If your credit provider isn’t offering you with any alternative solutions, you can reach out to a financial counsellor who will contact them on your behalf.
Watch this video to find out more information on managing large credit card debt.
Here’s how you can step up your debt game.
- Keep up your credit card repayments: Avoid interest rates and late payment fees by staying on top of your monthly repayments
- Lower your credit card limit: If you have found yourself struggling to make credit repayments in the past, set your credit card limit to an amount you can repay within 3 months.
- Close each credit card account as you pay it off: If you have multiple cards, make sure you close the account as you clear the debt on each card to avoid any fees
Get ahead of your credit card expenses with this free calculator.