If you are finding larger monthly credit card repayments are straining your finances then you might want to consider a debt consolidation loan to consolidate your credit card debts into one lower monthly repayment. My Sort of Loan, could help you to restructure your debts and lower your monthly outgoings to a more manageable amount giving you more money to spend on the items you and your family need for your home and life style or simply give you more breathing room once your monthly expenses and bills have been paid.
To find out what your new monthly repayments would be if you choose to consolidate your credit card balances then call for a free quote on 0800 0159 108 or dial 0330 0536001 (mobile friendly) alternatively fill in our short form and we will contact you (Don`t worry there is no credit search carried out from this form).
Consolidating your credit card and store card debts is an established way to streamline your finances and get your debts back under control by simplifying your outgoings into one affordable monthly payment. We can arrange refinance loans for homeowners from £3,000 up to £150,000 in increments of just £1,000 to suit your requirements and unsecured personal loans for UK tenants or home owners from £500 up to a maximum of circa £20,000 dependant on your credit history and affordability. Terms are available to match your income to help ensure you can meet the loan repayments.
Many people take out credit cards as a short term solution, maybe they want to go on a holiday or have an expensive purchase they wish to make, leaving large amounts of debt on the card can mean you are paying huge amounts of interest, especially if you only make the minimum required payment each month which can leave you with a long term debt which is never decreasing.
My sort of loan can help you beat the cycle by offering you a UK credit card consolidation loan which allows you to consolidate the balance on your various credit or store cards and restructure them into one monthly repayment where you are paying back a percentage of the new debt and hence taking steps towards being debt free. Many credit cards can come with high rates of APR and you may find we are able to reduce your monthly outlay although the total interest you are repaying over the term may be higher. If you get one of the best rate loans with a lower rate you could save interest depending on your circumstance and the length of the loan term.
A UK credit card is a form of payment given to sellers of products and services in place of cash. The card is issued by a financial organisation such as a bank or building society, this issuer grants a direct line of credit to the card holder allowing them to borrow money on the spot for a pre agreed interest rate.
Unlike a debit card, the card holder does not need to have a pre-existing balance to pay from but has a pre agreed credit limit on the card the financial organisation will set a borrowing limit for the card which the card holder cannot go over, this is based on your credit history, income etc. A credit card is also different from a charge card, where a charge card must have it`s balance paid at the end of each month, a credit card allows the debt to roll over month by month with the user only obliged to pay a minimum repayment amount at the end of each month. The interest will however continue to accrue, most financial advice companies will advise users to pay as much as they can afford per month in an attempt to stop people getting into financial difficulties as interest charges can be high.
Credit card issuers will usually not charge interest if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid. A credit card in the UK usually involves a third party who pays the seller and is reimbursed by the buyer, whereas a charge card just defers payment by the buyer until a later date, usually the end of the calendar month.
The modern day credit card as we know it today is the direct successor to merchant credit schemes first used back in the 1940`s in the USA. These schemes were in response the increasing number of car owners and their need to buy fuel on the go, companies such as Western Union had been issuing charge cards to customers as far back as 1921, they were printed on paper card stock but were often counterfeited.
Credit cards can be a useful tool for consumers, but there are pitfalls to be avoided, as with all forms of debt, it can be easy to get yourself into financial difficulty as interest rolls over, it is very important to make the right choice as to which credit card to choose and indeed to ensure cost don`t spiral out of control, remember a credit card is a form of lending and one way or another any loans must be repaid.
Though there are obvious benefits to the consumer, a credit card agreement is not one to be entered lightly. The main benefit to the consumer is convenience, there is no need to carry bundle of cash and there is no need to worry about your bank balance before every purchase provided you do not exceed the agreed credit limit.
Making purchases with a credit card also can offer more protection for the consumer than a debit card does, a certain level of insurance is offered by the credit card issuer, each card and country offers different levels of protection. In the UK the bank maybe jointly liable along with the merchant for defective products over £100. Some credit cards also offer insurance for online purchases and indeed for identity theft hence many consumers feel more comfortable making online purchases with their credit cards rather than their debit cards which offer less protection. A growing number of credit cards offer benefits and rewards packages such as rental car insurance, common carrier accident protection, and travel medical insurance as well as enhanced warranties at no further cost.
Along with these benefits, there are many potential dangers to the consumer, not least the threat of eventual defaults as charges become too much for them to handle. Many cards offer low introductory rates limited to a fixed term, usually 6 or 12 months, but once this grace period has ended a higher rate is charged, some customers underestimate the extra costs and are forced into more drastic measures to repay their debt, but My Sort of Loan may be able to help with an unsecured or secured consolidation loan before things get too out of control. Give us a call on 0800 0159 108 or enquire on line to find out what your options are through ourselves.
If you are considering getting a credit card please asses your options in detail ensuring you are fully aware of the interest rates you will be obliged to pay, what the late card repayments are and check you are fully able to make more than the minimum repayments on your credit card.