Don’t get caught out by credit card ‘deals’
August 16, 2013
The recent cap on benefits introduced by the UK Government in July is rumoured to be affecting around 4,600 households in Scotland. This new strategy will result in a deduction of around £100 per week for at least one quarter of Scottish households, and for those affected by the changes, could leave families with no choice but to borrow funds, possibly from credit cards, to make ends meet.
For disadvantaged families who are already struggling financially, it’s possible that credit cards will be the first route to funding extra financial help. However, it’s important to check the small print before making any drastic changes to your spending habits.
If you’re struggling with the legal jargon included in your credit card agreement, why not speak to a professional adviser who can simplify the information and explain it in a way that makes sense to you? Our knowledgeable team at Scotland Debt Solutions are specially trained to offer advice about a wide range of financial issues, and would be happy to personally discuss your needs whilst offering a safe and suitable solution.
Credit card deals can be enticing, especially when you’re struggling to pay bills. Low interest rates and popular deals offering 0% interest have flooded the marketplace in recent years, and it’s easy to forget that by choosing a credit card, you are entering into a legal contract. Like any legal agreement, breaching the terms and conditions will always incur a penalty, so ensure you have thoroughly read through any documents before committing yourself.
Defaulting on (missing) payments is just one of the many ways a credit card can quickly become expensive, even if the payment is returned due to an error. The penalties on a missed payment can escalate quickly, so make sure you always check your statements thoroughly for any unexpected charges.
Low or 0% interest deals, though tempting, can also be withdrawn following a defaulted payment. Although you should not expect to default when signing up to a credit card, it’s not uncommon for circumstances to change and occasional missed payments to be missed. Make sure you’re fully aware of the terms and conditions, so you know the resuming penalty, should this happen to you.
It’s important to be aware when the 0% interest rate period expires. Credit cards offering these deals often replace the 0% rate with a much higher rate. Providing your payments are up to date, at this point it might be time to consider switching to a better deal.
When you decide on a credit card, don’t be disheartened if you’re not offered the advertised rate. Only a small proportion of applicants are ever eligible for the advertised deals, so make sure you’ve checked the full details of your offer as it is often much higher than expected.
Credit cards and interest rates are confusing. So if you’ve found yourself struggling with the repayments on your credit card, why not speak to one of the specialist advisers at Scotland Debt Solutions, who will be happy to advise on your individual financial situation.
The start of a new year is the perfect time to take stock of your finances and put plans in place for a financially savvy year ahead. While you may feel your problems are insurmountable, there are always things you can do to help, most of them surprisingly easy. Here are 7 ways you can […]
If you have credit card debt which is attracting a high level of interest, moving this balance onto a lower interest card could save you a considerable amount of money. This process is known as a ‘balance transfer’, and if done correctly, this process could save you money and also reduce the time it takes […]
Many thousands of young Brits are being actively encouraged towards taking on debt and spending borrowed money even before they reach their 18th birthdays. That’s according to the price comparison website comparethemarket.com, whose research suggests that roughly one in four 16 and 17 year olds in the UK have been offered credit cards or asked […]
If you’re in serious debt with no hope of repaying your unsecured creditors, you don’t have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration (bankruptcy in Scotland). This also prevents your situation from worsening. There are two […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
Scotland has a number of formal debt solutions that can help you deal with a difficult financial situation. It’s advisable to take action as soon as possible, however, to prevent your levels of debt escalating when interest and other charges are added. Obtaining professional advice is key in this respect. An approved money advisor or […]