Levels of revolving debt continue to worsen. If that wasn't bad enough, the credit crunch has resulted in lenders increasing the rate of APR on credit card debt consolidation and rejecting higher numbers of loan applications. This has served to worsen financial difficulties for millions of people meaning that credit card debt help is essential.
According to research by the Consumer Credit Counselling service (CCCS) in Q3 2008 , the average UK adult has card debt approaching £2,300. Clients of CCCS owe on average over £14,000 on cards. CCCS counsellors are now providing credit card debt help to almost 50,000 clients every month, 3.5 times more than three years ago.
Credit Card Debt Help - Improved Budgeting
Put together a full breakdown of all income and expenditure. Try to identify ways to make extra cash or areas where spending can be reduced. Whilst it might not be possible to reduce the monthly rent, it is always possible to cut down on drinking, smoking and other social activities.
Write-off Credit Card Debt - Consumer Credit Act 1974
Before deciding upon a debt solution, check to see if the credit card debt is legally enforceable. If it cannot be enforced, it cannot be collected. Provided that the credit agreement was signed prior to April 6, 2007 there is a 50% chance that the debt cannot be enforced.
The Consumer Credit act 1974 places a legal requirement upon all lenders to comply with certain prescribed terms of the legislation. For example, the credit agreement isn't signed or the credit limit has been increased without it ever being requested by the borrower.
Section 77 of the Consumer Credit Act 1974 provides a borrower with an opportunity to request a copy of their credit card agreement for just £1. If the lender cannot provide a copy of the agreement it is possible to get the credit card debt written-off at that stage.
Clear Credit Card Debt with the Best Debt Solution
There are debt solutions available to assist those struggling with credit card debt. A Debt Management Plan is perfect for those with more modest levels of credit card debt. It permits debtors to put debts under one roof and make a single payment.
Those struggling with more serious debt may wish to consider an Individual Voluntary Arrangement. This is a legally binding arrangement that can result in up to 75% of unsecured debt and other finance being written-off.
Credit card debt help is available from a number of sources. The only people who will encounter problems are those who do nothing. Before opting for a debt solution, check to see if a credit agreement complies with the Consumer Credit Act 1974 as it may be possible to write-off the debt.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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