How To Pay Off Credit Card Debt UK 2023: Step-by-Step Path To Debt-Free Living

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As someone struggling with?how to pay off credit card debt UK,?you may think your only way to get out of debt would be to figure out?how to pay credit card debt off. Unfortunately, many budgets just don’t stretch to that. Furthermore, there is no one size fits all approach to finding an appropriate solution to?how to pay off credit card debt. From IVA’s to debt relief orders and debt consolidation loans, choosing the right debt solution for?how to pay off credit card debt?can be rather daunting and confusing, especially as an appropriate debt solution usually depends on your debt type and the amount outstanding.?

Thankfully those wondering?how to pay off credit card debt fast?will be pleased to know that they have quite literally landed in the right place. In this article, we introduce those with credit card debt to platforms offering access to feasible?credit card debt how to pay off?options.?

How to Pay Off Credit Card Debt in the UK ? – Top 5 Ways

Getting out of credit card debt can be tricky, especially if you are unsure what steps to take. Additionally, the strategies that work for some may not be suitable for you. Take a look at the suggested methods below that you could employ when struggling with how to pay off credit card debt.

#1. Consult With a Professional Debt Advisor:?Visit the Help My Debts Pro Website to Learn How to Pay Off Credit Card Debt Quickly

Obtaining professional advice provides you with quick, reliable information on how to pay off credit card debt quickly. Instead of reading through the plethora of blogs and ‘not- so-helpful’ credit card debt advice articles posted on social media, the advice provided by third-party advisors via platforms like?Help My Debts Pro?provides you with simple, jargon-free and unbiased advice on how to get your credit card debt paid up in a jiffy. Furthermore, there’s no pressure for you to accept any of the how to pay off credit card debt quickly solutions they provide.?

#2. Refresh Your Budget to See How to Pay Off Credit Card Debt Quickly:?Cut Back on Unnecessary Costs?

If you don’t have a budget, now is the time to start one! First, list all your expenses, including bills, fees, subscriptions and services. You can usually get a good idea of what these are from your bank statement. Then divide your expense list into needs and wants – for example, do you need that extra Netflix subscription? Or is that an unnecessary want??

By trimming down on unnecessary accounts, you can redirect the money you save towards your credit card debt. Having a budget in place also affords you a birds-eye-view of where you spend your money, which can help you reduce unnecessary expenditures. For example, perhaps you go to the Movies often; typically, this entails purchasing snacks and drinks and possibly paying for transport. If you cut back on personal expenses like this, you could use the money you save towards paying your credit card debt.?

#3. Consolidate Your Debt:?Apply for a Debt Consolidation Loan and Discover How to Pay Off Debt Credit Card Expenses Effectively

Debt consolidation loans are a great option for Britons searching for how to pay off debt credit card expenses effectively. Instead of paying off multiple credit cards and other loans or overdrafts, a debt consolidation loan allows you ‘put’ them all in one place. This means you will make one monthly payment with a single APR and a set repayment period. Of course, your instalment amount, APR and repayment term will depend on the debt consolidation lender you choose.?

One particular benefit of a debt consolidation loan is that most lenders will set up a direct debit for your payment schedule, meaning you won’t have to worry about missing a payment and possibly incurring expensive penalty fees.?

#4. Get an IVA (Individual Voluntary Arrangement): Apply for Contact from an Advisor on the Viva Debt Help Website

If you’re worrying about how to pay off debt credit card, perhaps you should consider an IVA. IVA’s or Individual Voluntary Arrangements are legally binding agreements made between you and your creditors or this case, your credit card provider to pay back your debt over a set period of time.?

Having an IVA in place means your credit card provider should stop charging interest on your outstanding balance, which will prevent the debt from escalating. Of course, you will have the responsibility of making the agreed monthly payments! You will also need to advise your IVA provider of any changes in your circumstance, such as an increase or decrease in income.?

If you’re interested in applying for an IVA, you can use websites like Viva Debt Help to indicate you would like to be contacted by a registered third-party debt solution advisor.

#5. Get a Debt Relief Order

DRO’s or?Debt relief orders?are an option to consider for those wondering how best to pay off credit card debt they cannot pay. In fact, DRO’s can be used for other qualifying debts such as loans, overdrafts, council tax, debts to family and friends and even rent arrears.?

A DRO lasts for 12 months, and if you qualify and are approved, you won't have to pay these debts during the twelve-month period. After twelve months, you won't have to pay the debt anymore. Of course, this type of arrangement will remain on your credit file for up to 6 years from the date the DRO was approved.

If you want to explore your DRO options, you can indicate you would like a third-party advisor to contact you via platforms like Viva Debt Help.

One of the Best Ways to Write Off Your Debt – How Best to Pay Off Credit Card Debt

Whether you have found yourself struggling with insurmountable credit card debts, council tax arrears, HMRC payments or missed personal loan instalments, the most important step to becoming debt free is understanding the type of debt solution that works for you.?

In some cases, IVAs or DRO’s are a good idea, while a debt management plan might be better in others. For example, an IVA wouldn’t be considered the best solution for paying off a small amount of credit card debt. But it might be an option worth considering for a large personal loan.??

It’s worth looking at the different types of debt solutions available when considering how best to pay off credit card debt so you can select the right one for your unique circumstances.

How Best to Pay Off Credit Card Debt Need-to-Know: Different Types of Debts

Unfortunately, credit card debt often results from staving off other types of debt. For example, perhaps you have been using your credit card to pay for different types of debt, such as rental payments or personal loan instalments; as a result, you’ve found yourself in a never-ending circle of debt

Some of the types of debt you could find yourself in include:

Credit Card Debt

Credit card debt is the norm for most Britons. If you have credit card debt, it's usually because you haven’t been making your credit card payments. As a result, you will have incurred penalty fees and additional interest on these missed payments, meaning your debt will have continued to increase even if you haven’t been using your credit card.?

Credit card providers will quickly issue you a notice of default if you miss your credit card payments. This can be extremely damaging to your credit score and can continue to appear on your credit history for up to six years. In addition, should your credit card provider hand your credit card debt over to a collection agency, you are usually responsible for the collection fees.?

Ensuring your credit card debt is paid is crucial to avoid further penalties and costs. However, if you find it difficult to service your credit card debt, you should consider other debt solutions, such as a debt relief order (DRO) or a debt consolidation loan.

HMRC Debt?

Income Tax, NI (National Insurance) and VAT all fall under the umbrella of the HMRC (His Majesty’s Revenue and Customs) and are considered priority debts for all taxpayers. This means these debts should be paid before other debts are serviced to avoid severe penalties.?

Should you avoid paying these debts, action can be taken against you to recoup the money owed. For example, HMRC could recover the money directly from your bank account or take your possessions (even by force) to sell and regain the funds they are owed. Fees for this process are usually charged to you.??

If you have found yourself battling to pay your HMRC debts, speaking to a professional debt solution advisor can get you the advice you need to stay on the right side of the law.?

Council Tax Debt

Council tax is the value you pay your local council for services such as rubbish collection and disposal, fire and police services, education services and park maintenance. Other services paid for with your council tax include street light maintenance, record keeping (births, deaths and marriages) and much more. As you can see, this tax is essential for the smooth running of any community.?

Much like HMRC debt, your council tax debt is considered a priority debt and, as such, must be paid before all other debts. For example, if you have council tax debt, this must be paid before other debts, such as your credit card debt or a personal loan.?

If you skip paying your council tax, your local council will be advised, and steps will be taken to recoup the money you owe. Should you find yourself struggling with council tax arrears, it's best to speak to a debt advisor who can provide advice on reducing your council tax arrears or help you devise a feasible plan to repay the debt.?

Conclusion

While struggling under the burden of credit card debt can leave you feeling backed into a corner, thankfully, there are ways to resolve the issue. Finding a debt solution that suits your unique circumstances and budget is simpler than you think. Simply visit one of the platforms mentioned in this article, input your details and wait to be connected to professional third-party debt advisors who can assist. The worst thing you can do when stressing about how to pay off credit card debt is to do nothing. Unfortunately, allowing credit card debt to suffocate your finances isn’t helpful to you or your creditors. Instead, take action now, get a firm grip on your finances and start your journey to financial freedom today.?

FAQ’s

What Are the Top Reasons to Pay Off Credit Card Debt?

There are many reasons why you might want to settle your credit card debt, mounting expenses and insufficient cash flow at the top of most people’s lists. You can save money on interest and service fees by settling your credit card debt.

How to Quickly Pay Off Credit Card Debt?

Paying off credit card debt can take time, especially if you only pay the minimum due each month. It can take even longer if you’re missing payments due to being overindebted and incurring extra fees. If you find you’re in a financial bind, you could consider alternative ways to settle credit card debt quicker, such as chatting with a professional and qualified debt solutions advisor who can give your more information on IVAs, debt relief orders, debt management plans, debt consolidation loans and more.

What is an OK Amount of Credit Card Debt?

The amount of credit card debt that is okay for you will depend on your income, available cash flow and if you’re managing the payments. That said, the general rule of thumb is never to spend more than 10% of your take-home pay amounts on your credit card monthly instalments. For instance, if you clear ￡2500 per month, your credit card instalments should not come to more than ￡250 per month. If they come to more, you could become overindebted and have to look for debt solutions.

How to Get Out of 30K Credit Card Debt?

If you’re in 30K credit card debt, there are several things you can do to write off the debt or pay it down. First, you could focus on reducing your monthly costs and using the extra money to plug into your credit card. Paying more than the minimum due will help you overcome the debt quicker.?

If this isn’t possible and you’re drowning in debt, you can chat with a qualified debt solution advisor who will provide you with possible options. These may include getting a debt consolidation loan, debt relief order, debt management plan or individual voluntary arrangement.

Can I Clear My Credit Card Debt UK?

For some in the UK, being overindebted can result in a debt write-off which means that creditors agree to clear your credit card debt and other debts even without a debt solution in place, but this isn’t always the norm. In most instances, creditors will agree to a debt solution and not agree to a complete write-off.

Disclaimer: All debt solutions should be very carefully considered. The websites advertised in this paid promotion do not provide debt advice. If you complete the form and provide permission to be referred, they will pass your details onto a regulated debt advice solution provider. All the partners they use are regulated by the Financial Conduct Authority to provide debt counselling. The websites advertised work exclusively with trusted debt solution providers. If you proceed with one of their solution options, they may receive a fee for introducing you to them. The websites advertised are lead generation companies who pass your details onto third parties in order to help you with your debt solution.

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The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.