Of all the different types of debt around today – credit card debt is probably the most insidious. It preys on our weaknesses; we see things we want and the credit card gives us the ability to buy them regardless of whether we can afford them or not. So the weak-willed amongst us spend up to the limit than “park” the card, meeting only the minimal payments but racking up huge levels of compound interest in the process. So make no mistake – credit card debt is a complete no-no if you can possibly avoid it.
They can be a very good tool when used wisely. There are some good deals around like 0% interest for six months, or cash-back – and a credit card does provide free credit for a while and maybe free or cheap insurance on purchases, as well as other rewards. Some also give you extra legal protection and they allow you to make quite big purchases with relative ease. In other words; they’re useful tools but only for those of us with the self-discipline to use them wisely.
For many other people, they pander to our weaknesses. Many people find it all too easy to let credit card debts slide completely out of control and it’s one of the most expensive forms of debt around. So if you’re in debt and, amongst your debts, you have credit card debt that you’re behaving in an ostrich-like fashion about, then pull your head out of the sand and take direct action to do something about it. Pretty much anything is better than nothing.
There are many steps you can take – but seek out expert objective advice before you decide what to do. This may include a consolidation loan or something as simple as economising more. But if it’s more serious then there are various options available to you including debt management plans, IVAs and even bankruptcy.
But do try and drop the credit card debt and do face up to your situation.