Published on June 28th, 2016 | by FinanceLoophole0
Can’t Pay MasterCard Debt
If you can’t pay MasterCard debt then it is likely that you have additional debts that are forcing you into a financial situation which can be very uncomfortable. It is a situation that many people have been experiencing in the last few years as household expenses have been squeezed after the financial crisis of 2008.
We have taken a look at what problems led people into debt with MasterCard and what people can do to get themselves out of credit card debt quickly.
Minimum payment due your credit-card statement tells you! How easy is that – just pay a small amount and your off the hook for another month. Sadly, as more than 35 percent of the UK who carry a balance every month know, rotating charges will usually comes back to bite you big time. For example, a MasterCard holder who owes £2,293—the average amount of debt per UK household – will end up cashing out an extra £1,250 in interest if they pay only the minimum each month. That’s a massive amount on top of the original amount of spend and will be a contributing factor in why people have problems paying their card bills of in full.
Can’t Pay MasterCard Debt
What happens if I can’t pay my MasterCard bills?
The main issues that people have who come to us because they can’t pay their MasterCard debt are very varied.
Probably at the top of the list of reasons they cannot pay their MasterCard debt is the financial impact of a major change in financial circumstances.
I Lost My Job And Can’t Pay MasterCard
One of the reasons many people get into really bad debt is due to a big change in their household income. This can commonly but not exclusively follow from loosing their job. Less household income can leave families really struggling to pay their usual bills. If it then takes a few months to find new work, it’s not uncommon to quickly spend all of their savings and start living off a credit card to get by.
It is not a good idea to start living off credit cards – hoping for the best! There will inevitably come a crunch time when you need to pay the money back. It is better instead to look at your household finances urgently and look at ways you can cut your outgoing so that you don’t have to rely on credit or you could find yourself with a MasterCard bill you simply cannot pay.
Keeping Up With The Jones’s – Your Road To More MasterCard Debt!
Keeping up with the Jones’s is not just a saying – it is a major reason a lot of people we have dealt with have get into MasterCard debt.
In these days of abundant credit facilities it is relatively easy to get hold of a credit card with a few thousand pound limit on it. This will allow you to spend up to the limit with no restriction. This will help you to get hold of those things you want to keep up with what people around you have.
The problem comes when you try to repay the debt you have amassed on your MasterCard. If something happens to your finances once you are maxed out on your card you could have problems meeting your repayment schedule. We would always say that it is best to always spend within your earning limit – never spend more than you earn or you will inevitably have financial difficulties.
OK – What Can I Do About My MasterCard Debt?
The answer to this question is always the same – first don’t panic – no debt is too big to sort out quickly if you really want to do it. Follow the simple steps below and you won’t go far wrong.
- Target just one card at a time – if you are supporting multiple credit card debts it can be simpler to treat one as a target to clear first. This can give you the gratification it is possible and strengthen your resolve to clear the other cards down as well. Select the card which has the highest interest rate on it and would cost you the most if you did not pay it. This could involve you transferring debt from one expensive MasterCard onto a cheaper card – but see our caution below. The main thing is to cut your debt and the interest that debt is coating you.
- Balance transfer to cheaper card – transferring debt from an expensive card to a cheaper card can save you hundreds of pounds over time. But be cautious because the introductory low-interest deal period will run out so you should only do this if you intend to pay off the card in full BEFORE the end of the introductory period or it could end up costing you considerably more if you do not pay off your debt.
- Ask for reduced interest repayment rates – Contact your card provider and tell them you are having problems repaying your MasterCard debt. They are obligated to be sympathetic and work with you to pay down you debts. Provided that you have had a good repayment history before this should not be a problem. If however you have a poor credit rating and a bad repayment history this may be more a challenge – they could say no to you. It is always worth asking.
- Make more than one payment a month. You don’t have to wait until you get your bill and then pay the minimum payment. Remember that interest accrues on a daily basis if you can’t pay MasterCard debt so if you can pay in the middle of the month – making 2 payments (or more) this will cut the amount of interest you will be paying overall.
If you are struggling with multiple card debt you may find it easier to engage a debt management company that will look after your debt for you. They will manage it in a way that will result in you paying off your debt as quickly as you can afford so you don’t have to worry about it any more. Get help with this debt management company that we have had good feedback about.
What’s The Difference Between MasterCard And Visa
Visa and MasterCard are both payment mechanisms and not credit cards in their own right. The Visa or MasterCard cards are issued by providers to using one of these payment mechanisms. There is no significant differences between the two card payment mechanisms. MasterCard and Visa are the name of the companies who manage the global payment systems for the cards. Customers will normally select either a MasterCard or Visa card from their bank though not necessarily preferring one payment method over another – instead allowing their bank to provide their preferred supplier.