The credit card debt mountain is growing at an unprecedented rate, all over the world. Therefore, it is understandable that more and more people are having problems repaying their debt and are looking for some form of credit card debt advice. Then you are hit with another problem – there is too much credit card debt advice out there!

Which piece of advice is right for you? You may want to reduce your credit card debt payments but you don’t want to be paying it off for 30 years. You may be thinking about a loan to consolidate your credit card debts, but is this really the right thing for you?

Before you take professional credit card debt advice, you should be aware of your options…

DIY Credit Card Debt Advice

If you feel as though you are still in control of your credit card debt, then the DIY option may be for you. There are a number of ways that you can tackle your credit card debt without getting professional credit card debt advice, including:

Pay more than the minimum amount required – This may seem like you are not doing much to tackle your credit card debt, but in reality you are. No matter how little extra you can afford to pay, it is important that you make these additional payments. This is a simple way to keep your interest charges as low as possible, as interest added to credit card debt is one of the reasons it feels so impossible to repay.

Create a budget – Creating a budget is essential to get your finances in order. You need to track how much you expect from income and how much your outgoings are, be sure to include any standing orders, direct debits and secured debt repayments.

Scrap that budget. Start again – It is likely that your first attempt at budgeting may not be the most successful, maybe you didn’t realise how much you spend on petrol or the true cost of your morning latte.

But please do not give up, your budget can work and you can repay those credit card debts to become debt free! After you have learnt from your mistakes, it is time to rework the budget to suit you. Yes, it needs to be strict, but it also needs to be livable. Don’t forget to save some money for contingencies, such as birthdays or unexpected costs.

Professional Credit Card Debt Advice

Sometimes the only way to deal with your credit card debt is to seek professional credit card debt advice. If you have multiple debts, including store cards, credit cards, loans and overdrafts, it can sometimes be worrying about how to deal with your debts in the most efficient manner.

Be warned – There are a number of companies out there who do not have your best interests at heart, and it is essential to shop around to find an ethical debt solutions company who can offer the full range of financial products so you are not pressured into a debt solution which is not right for you.

Debt solutions come in many shapes and sizes, including:

Debt Management Plans – A Debt Management Plan means that you can make a single reduced payment to cover all of your unsecured debts. This can often be a debt solution if you have low-ish levels of debt, typically under $15,000.

This type of debt management solution means that you all of your unsecured debt repayments are covered through this single payment, which should enable you to budget more efficiently. The downside is that it will take you longer to repay your debts and you may be charged a management free from a debt management company. However, it will make your credit card debts affordable and the company is likely to deal with all contact from your unsecured creditors, leaving you with peace of mind.

Bankruptcy – Bankruptcy should never be seen as a ‘quick fix’ to credit card debts, which is why it is important that you seek professional credit card debt advice from an ethical company. They should go through your finances and work out if there is a way for you to avoid bankruptcy and still repay your credit card debts.

For those who seek bankruptcy advice and still feel that as though it is the right solution to clearing credit card debt, you should be aware of the disadvantages. You will lose control of your finances, will lose your home and find it very difficult to get accepted for credit in the future, but for some bankruptcy is the only debt solution available.

These are not the only solutions to credit card debt. But hopefully by reaching the end of this article, you should have a better understanding of whether you can tackle your debts yourself or whether you would be better seeking professional credit card debt advice.

This blog is a great starting point to offer you advice on both of these measures. Arm yourself with all the information that you can before seeking professional debt advice – it is important you know what you want to get from the debt solution, and then you can plan a future free from credit card debt.

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