Paying Too Much Interest
One of the most common reasons for getting into debt and staying in debt is paying too much interest. Despite the Bank of England base rate being at a record low of 0.5 per there are still banks, store card and credit providers not passing on these savings. If you feel that you are in debt from paying too much interest please call our debt advice team on 0800 0789 544 or apply online
In our experience debt problems are often caused by paying too much interest on high interest credit card, store cards, overdrafts and unsecured personal loans.
We may be able to save you hundreds of pounds a year in interest payments. Consider speaking to one of our debt advice team who can do the following:-
- We will contact all of your unsecured creditors
- We will explain your situation
- We will negotiate with them on your behalf to stop of reduce interest costs
- We will try and solve your debt problems by examining all the interest rate you are paying. If we can the lower interest rates being paid the more money will actually go towards repaying the actual debt
- We will advise you how to repay the debt as quickly as possible, while being charged the lowest possible interest rate.
Consider using savings to repay debts
We always advise using saving to pay off expensive or high interest debts. The interest rates on savings are always far less than interest charged on borrowing.
Shop around for low interest or interest free credit cards
A lot of the consumers we speak to have credit debt but unable to pay them each month. Many people’s debts build up because they are making the making minimum payment every month. It’s always advisable to switch to credit cards that offers 0% interest rates or low balance rate interest rates. These credit cards can save you hundreds or even thousands of pounds that you would have had paid in interest charges.
If debts are too severe for informal budgeting or credit advice then the following options can be considered:
- IVA
- Debt Management
- Bankruptcy
- Trust Deed
- Debt Relief Order
- Country Court Administration Order
- Debt Consolidation
- Remortgages
- Interest only debt options
- Secured Loans
It's also possible you may be paying too much interest on your debts. If you are paying too much interest on your debt commitments our debt advice team acts on your behalf to advise on ways to reduce the interest rates you are paying as much as we can.
