An increasing number of credit card holders are finding it hard to keep up with monthly payments. But what’s the solution?
According to Now Loan, a leading responsible UK finance service, an increasing number of credit card holders are finding it hard to keep up with monthly payments. In the last year, UK living costs have started to rise sharply. It is predicted the cost of food alone will see an increase of 5% during 2020.
This will put further pressure on already stretched wages and make it harder for families to meet their monthly financial commitments. Many families in the UK are already using their credit cards to pay for food and other essentials. Eventually, this could lead to having to choose between paying your credit card bill or paying for your weekly grocery shop.
In other words, both families and private individuals find themselves stuck between a rock and a hard place.
What Happens When You Miss A Monthly Credit Card Payment?
Credit card companies handle the situation in different ways. Before you sign up for a credit card, you must find out what terms and conditions apply when it comes to late payment.
Some credit card companies will apply an extra fee, and others will increase the interest rate on your card. Adding extra interest makes it harder for many families to pay back both current and overdue balances.
Other credit card companies also “suspend” service of the card. That means you could find yourself in the supermarket with no means of paying for your purchases. Most credit card companies will also share late payments with credit checking agencies such as Equifax.
How to Handle A Missed Credit Card Payment Or Clear Credit Card Debt
When you find yourself struggling to meet monthly credit card payments, or unable to clear credit card debt, you should, first of all, get in touch with your credit card company. They may offer you a payment plan and freeze the interest on your card. But, you need to be aware that this can affect your credit rating.
An alternative is to contact a responsible lender such as Nowloan. Even though you may have a few credit problems, independent lenders will often help you to consolidate or set up a loan to clear your credit card debt. As long as you meet the loan payments, this will have a positive effect on your credit status.
Can I End Up in Court?
Depending on the size of your credit card debt, you may end up in court. If this happens, and the judgment goes against you, a CCJ (County Court Judgement) will be added to your credit profile. It is always best to avoid this situation. Before you reach this stage, it is a good idea to contact an independent lender to find out if you can borrow the money to clear the balance. A loan from a responsible lender may even cost you less than a bank loan or topping up your mortgage to pay off your credit card.
If you are concerned about personal debt, you should take the opportunity to speak to the friendly financial advisers at NowLoan. They can help you to find the right credit solution to suit you and give you advice on how you can improve your credit status even when you are experiencing problems with your credit card company.