The festive season is for most a time for joy and celebration, but for many families, it can be a time of financial stress and uncertainty.
Credit card debt might feel overwhelming, but with the right approach, it’s absolutely manageable.
The first step? Know your rights. If you’ve signed a credit card agreement, you’re responsible for the repayments. Shared accounts mean shared responsibility – if your co-signer doesn’t pay, you’re still on the hook. But as an additional cardholder, you’re not liable unless you’ve signed the agreement yourself. Wrongly pursued for debt? Demand the company stops and escalate to the Financial Ombudsman Service if needed.
Don’t ignore debt letters. Quick action can stop things from spiraling. Can’t afford the proposed plan? Negotiate! Many companies will work with you to pause interest or lower payments. Stay proactive if legal action looms- understanding your rights can keep bailiffs at bay.
Budgeting is your best friend here. Prioritise essential bills, then aim to make at least the minimum card payment to dodge fees and safeguard your credit score. Automate payments with a direct debit for extra peace of mind. Tackle high-interest debts first or consider transferring your balance to a card with a lower rate. Thinking of a loan? Avoid those secured against your home unless absolutely necessary.
If you’re struggling, don’t go silent. Contact your credit card company, explain your situation, and propose a realistic plan. Many will offer support like freezing interest or adjusting repayments. The key? Take charge early – because the sooner you act, the more control you’ll have.
