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The unsolicited increase in customers’ credit card limits is among measures being considered by Government for new legislation as it looks at ways of halting the explosion in credit card debt. The proposal will mean that increases can only happen in response to a specific request.
Ministers will also request that the practice of issuing unsolicited credit card cheques by these companies should also be stopped, as these only encourage credit card debts to develop further. These cheques are delivered to customers who are then invited to use them to settle other credit card debts or for new purchases or payments. Generally they are more expensive to use than credit cards, and purchases obtained with these do not have the same level of protection offered for faulty goods - as with standard card purchases.
More and more people are seeking assistance with credit card and other debts according to debt help organisations. They are experiencing the impact of the current economic climate as people become more concerned about ongoing income levels, re-evaluate their debt position and look for help in bring their finances under control.
The need to find ways to fight credit card debt is paramount for all, especially as the total UK credit card debt is now estimated at £53 billion.
All debt help organisations offer a number of alternative options that can assist people in difficulty, the options offered include schemes such as debt management plans, Individual Voluntary Arrangements (IVAs) and Trust Deeds. These options enable people to reschedule their debts in a more affordable and manageable way, whilst still repaying the amount owed.
By spreading the total debt over a specified period which is usually longer is the normal practice. Additionally by prioritising those debts such as mortgage or rent, council tax, utility bills and living costs (including travel to work) the home and job of the individual are protected as far as possible. This in turn benefits the other debts which could not be repaid if the individual lost their job.
A debt management plan is an informal way of repaying multiple unsecured balances with only one monthly payment, thus making the management of difficult financial position easier.
With an IVA unsecured debts are repaid over a fixed period, usually five years. At the end of the arrangement outstanding balances will be written off. In Scotland a similar arrangement exists called a trust deed. It differs in that the normal period is three years.
Reputable debt help organisations will offer free debt advice and IVA help, and will then be able to show you the most suitable options to meet your specific circumstances.
To speak with an adviser immediately for instant debt relief, or to find out more about all of our credit card debt options, call us today on 0800 043 2332 or visit www.chilterndebtmanagement.co.uk/credit-card-debt.aspx”> Credit Card Debt , www.chilterndebtmanagement.co.uk/”> Debt help or www.chilterndebtmanagement.co.uk/ivas.aspx”> IVAs leave your details and we will call you back.
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