Credit Counsellors and Individual Voluntary Arrangements
A credit counsellor may provide knowledgeable guidance on your alternatives if your debt has become intolerable.
They can evaluate your financial circumstances and provide specific recommendations for solutions like debt management programmes or individual voluntary arrangements (IVAs).
IVAs are official agreements mediated by an insolvency professional between you and your creditors. Over a specific time, at minimum payment, they let you pay off your obligations with manageable monthly instalments.
Any outstanding debt is usually wiped off after the period.
Utilising Balance Transfer Cards and Store Cards
With the help of balance transfer cards, you may transfer high-interest credit card balances to cards with reduced APRs, sometimes during a special 0% APR period. Using this method, you may reduce your debt and save on interest payments.
Remember, carrying a debt on a shop card with a high-interest rate might damage your credit score.
To prevent further interest fees, ensure you understand the terms and conditions of any balance transfer card and settle the transferred balance before the expiration of the promotional period.