What happens if I don’t keep up with credit card repayments?

Credit card debt is unsecured so while you don’t need to worry about losing your home, you should still make it a priority to solve the situation before it gets any worse. Falling behind with your credit card repayments can cause you to spiral into an unmanageable debt situation surprisingly quickly.

With many credit cards having high interest rates of over 30%, these can quickly create severe financial problems if payments are missed and the outstanding balance continues to increase. So what happens when you can’t afford to make the minimum payments on your credit cards and is there any help out there?

What happens when I receive initial contact from the credit card company?

When you miss a payment the credit card provider is likely to charge a fee, and will notify you by letter of the missed payment. They’ll expect a payment to be made straight away to bring the account into line. If you don’t respond to this, you run the risk of the situation escalating and ultimately end up involving the courts, Sheriff Officers, and months of steadily increasing pressure. 

What are ‘Diligence’ or enforcement action measures?

Creditors can take various measures to recover their money including arresting your earnings, which involves your employer deducting a fixed sum from your wages to repay the debt over a period of time.

Bank arrestment is also a possibility, and this freezes a proportion of your bank balance to repay the creditor.

So is there anything you can do to prevent court action and the diligence measures described?

Seek professional help

Obtaining advice from a personal debt expert can prevent such drastic measures and help you recover financial stability. Scotland Debt Solutions specialises in helping Scottish residents escape debt, and will make sure you understand all your options before you decide a route forward.

These may include formal insolvency procedures such as the Debt Arrangement Scheme (DAS) or Scottish Trust Deed, or informal negotiations with your creditors for new and more affordable repayment plans.

If you are struggling with your debts, get in touch with one of our experts – we can give you immediate help and advice to quickly establish your best options.