Store and Credit Card Debts in Northern Ireland

How to manage store and credit card debt

Credit cards are the most common type of personal debt, with store cards not far behind. These cards can lead to spiralling financial problems with the tendency to spend on consumer goods – such as groceries, clothes and holidays – with a buy now, pay later mindset. However, by the time ‘later’ comes around, interest and charges can leave your balance much bigger than initially anticipated.

Although these cards look similar and allow you to buy now and pay later, there are significant differences between credit cards and store cards. You can use a credit card practically anywhere; payment networks, such as Visa and MasterCard, allow for global spending but with store cards you can only use them within that store. For example, a Next store card can be used at any Next across the UK, but only Next will accept it.

It can be tempting to take out a store card (and crucially, a binding consumer credit agreement) when making a purchase in the store and the customer service adviser offers you the card which, when taken out there and then, will allow for discounts on your purchases. This is how a lot of store card accounts are opened.

However, caution should be exercised. Store cards typically come with an interest rate even greater than that which is levied on credit cards.

“Before the Debt Management Plan, I felt like I was drowning in debt with no way out. It gave me the structure and support to manage my repayments and negotiate with creditors. For the first time in years, I can see a clear path forward, and the stress of juggling bills is finally easing.”

Taking out a store card or credit card can seem like a harmless and useful tool at first but it’s easy to fall foul of the fees and interest that are applied should you fail to repay the balance in full each month.

We help individuals across Northern Ireland that are suffering with financial problems stemming from credit and store cards through a number of formal and informal insolvency processes which can help protect you from creditors as well as get you back on the road to financial freedom.

Speak to one of our friendly, experienced debt advisers today for a free initial consultation to help you better understand your options.

If you envisage yourself continuing to struggle to pay your mortgage going forward, you will need to look at a longer-term solution to the problem. This could include increasing the length of your mortgage, or temporarily switching to an interest only loan. While this may give you a better chance of being able to stay in your home, both of these options will see you paying back much more money over the life of the mortgage.

If you ignore the arrears you have built up, your mortgage company may have little choice but to begin court proceedings to obtain a ‘possession order’. This is a very serious step and could eventually lead to you losing your home. However, all lenders see repossession as an absolute last resort and would much rather resolve the situation before it gets to this stage by coming to a mutually acceptable solution that satisfies both parties.

Seeking professional advice is of paramount importance if you are struggling to pay your mortgage as time really is of the essence. Call our experienced advisers today for help and advice to get you back on track and back on a solid financial footing.