Credit Cards – Introduction
Used wisely, credit cards can provide a safety net for you, the consumer, particularly where there are disputes or issues with the product or supplier. This protection also extends to items purchased abroad. The problems, however, begin when borrowers can no longer afford to pay their balance in full. Not being able to pay off the full balances can trap people in ever-increasing debt. It is important to tell your card provider if you are struggling to make payments. Many are helpful and arrange a new payment plan better suited for your financial situation.
What interest and charges can be added to my debt?
There are some zero-interest cards. However, in general, interest is calculated via a card’s outstanding balance. Extra charges may be added if you miss payments or pay late, but your creditor can only add charges if they’re detailed in your credit agreement.
What is APR?
Interest will be shown as the annualised percentage rate or APR. The higher the percentage, the more expensive it is to borrow. Therefore, APR is a helpful way of comparing the interest costs of different loans or cards. You may be charged a higher rate if you have a poor credit score.
How to re-negotiate interest and charges?
Your creditors are more likely to offer support if you can prove that you’re experiencing financial difficulties. Here at Lestons, we can approach your card provider and develop a fair and affordable solution on your behalf. We can also organise a budget plan to highlight what you can pay towards your debt.
What should I do if I think the interest and charges are too much?
You should complaint if the creditor is adding interest and charges which are more than the amounts set out in your credit agreement.
Credit Card Interest Calculator
Please see the following calculator which can be useful in determining your ultimate financial cost – https://www.uswitch.com/credit-cards/calculator/
Can you help get interest and charges stopped?
Your creditors are more likely to help if you can prove you’re in financial difficulties.
How Lestons can help
We can help you put together a budget that will show your creditors what you can afford to pay and approach them on your behalf to develop a fair and affordable solution.
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