The dangers of credit card debt | Debt Consolidation Loans

Illustration of a man in debt

The dangers of credit card debt

The dangers of credit card debt Credit card debt is one of the most common causes of stress for people all over the UK,

 

as it can lead to a great deal of financial strife. If you don’t keep on top of your monthly credit card payments, your debt can spiral out of control and can become extremely difficult to dig your way out of. The dangers of credit card debt include:

Damaged credit score

Having excessive credit card debt will significantly decrease your credit score. Your credit utilisation ratio (how much debt you have accumulated on your credit cards versus how much credit you have available) impacts 30% per cent of your credit score. The higher your credit utilisation ratio is, the higher the likelihood that your overall credit score will be harmed. If your credit score is too low, it will prevent you from being able to qualify for new credit card loans.

It can leave you unprotected from unexpected expenses

Life is full of surprises, which is why having plenty of savings is vital to ensuring that you are protected from any unexpected costs that might occur during your lifetime. If an unexpected cost suddenly appears, such as your car breaking down or your boiler malfunctioning, you should be able to pay for it with cash from your savings. It’s a good idea to have between six and twelve months worth of expenses in your savings account for you to rely on in times of need, but excessive credit card debt can leave you vulnerable if an unavoidable expense suddenly appears.

High interest rates

One of the biggest problems with looming credit card debt is the high interest rates that come with it. Many credit card companies are known to charge over 20% in interest rates, which can quickly escalate and become difficult to control if you don’t keep up with your monthly payments. Many credit card users make the mistake of only paying the minimum monthly amount required, which can make it difficult to pay off your resulting balance.

If you’re a homeowner and are wondering how debt consolidation loans can help you take control of your credit card debt, get in touch with our friendly team at Debt Consolidation Loans today.

 

If you’re a homeowner and business owner, get in touch with the experts at Debt Consolidation Loans today for more information about how a debt consolidation loan can benefit you.
If you think a Debt Consolidation Loan is right for you, get in touch or call on 0333 577 5626 to improve your financial situation with one easy monthly repayment.

We offer Debt Consolidation Loans for homeowners.

Our team is on hand to help with number of questions you may have.

If you are struggling with debt, please visit Money Advice Service for help and advice.

We are a broker, not a lender.

Visitors also read:

debt consolidation loansDebtGuides
October 1, 2015

The New Generation Youth In Debt

Youth in debt “A new generation of young people are starting out with stifling levels of debt”, warns Citizens Advice chief executive Gillian Guy, as a report reveals that more…
Beating the Money Bullies | Debt Consolidation LoansGuides
September 20, 2015

Beating the Money Bullies

Beating the money bullies If you ask people what they worry about most, money is always near the top of the list; ask them what they argue about most and,…
Scammers Target Pensioners | Debt Consolidation LoansGuides
September 15, 2015

Scammers Target Pensioners

Scammers target pensioners The over-55s are being targeted by scammers who want to get their hands on people’s pensions now that the law has changed, Citizens Advice reported recently. In…
Need to Buy a New Car - I have Debt | Debt Consolidation LoansDebt Consolidation
September 9, 2020

Need to Buy a New Car – I have Debt

Need to Buy a New Car - I have Debt - Debt consolidation loans can help and advise when you need a new car and have debt, so speak to…
Can I consolidate my medical loan ? | Debt Consolidation LoansDebt Consolidation
June 1, 2020

Can I consolidate my medical loan ?

Can I consolidate my medical loan? Can I consolidation my medical loan? Debt Consolidation Loans cover a huge range of different debts and a wide variety of unique circumstances. One…
what is a debt management planGuidesHow To's
August 23, 2015

Have You Planned for an Interest Rates Rise?

What Is An Interest Rates Rise? Have you planned for an interest rates rise? There is growing speculation that an interest rates rise will be on the cards after Mark…

Leave a Reply

nine − 1 =