A credit card is a financial product that allows the cardholder to borrow funds from a financial institution, to make purchases or obtain cash advances.
It is a continuing credit contract, with the cardholder continuously able borrow up to a certain pre-approved limit. The interest that is charged for access to a credit card facility is often much higher than other lending products.
It is important to understand the fees and charges associated with credit cards before applying and activating a new credit card account:
It is also important to understand the terms and conditions of your account and to take time to consider these:
Other considerations of holding a credit card account include:
Negotiate an arrangement to pay by instalments or to settle the debt.
Refinance the loan
Even if you are just one day late in making a repayment on your credit card debt, you are in default. Your lender may send you a default notice.
If you do nothing, your debt will continue to increase as it accrues interest. It is therefore important to address the problem as soon as possible.
Ameenah has missed a number of payments on her credit card. Ameenah’s bank sent her a default notice. Ameenah calls Consumer Credit Legal Service (CCLS), because she does not know what the default notice means or what to do.
We advised Ameenah that a default notice allows her bank to recover the debt from her if she does not fix the default. CCLS advised Ameenah of her options including her right to apply for a hardship variation. To find out more information about hardship variations, see our information on hardship.
Information on our website is provided for information only and is not legal advice. If you would like legal advice, please message us using the form below for a confidential discussion, or scroll down to see other ways to reach us.
If you are having difficulty meeting your credit card repayments and would like advice please get in touch with CCLS for a free, confidential discussion using the form below; or scroll down to see other ways to reach us.