Over recent years we have seen some of the world’s biggest economies crumble, resulting in thousands of people running up an increasing amount of debt, particularly on their credit cards. More and more people are finding themselves in a position where their debts are simply not manageable.

Some people can barely afford to pay back their monthly credit card bills, as a result of inflation and prices of goods rising, families have less disposable income as comedies and essentials become more and more expensive.

If you have a large credit debt bill it’s not the end of the world, millions of people have got debt and thankfully there are many solutions to this problem. If you have more than one credit card consider moving as much debate as possible onto one card with the lowest long term interest rates. By doing this you will ensure you are paying the lowest interest rates for most of your debt, this way you will be paying back less every month.

Interest rates and cash back offers

If you cannot consider this option then you may want to look into applying for another credit card with a low interest rate and a big enough credit limit to cover the amount of your debt. When looking for new cards look at ones that offer a 0% transfer balance rating to avoid any extra charges. One of the great things about new credit cards is that some offer cash back offers, these cards are great because you can earn money towards paying back the debt you have.


If you have a poor credit rating you might not be able to transfer any credit card debt easily. While getting another credit card will not negatively affect your credit rating, unless you default on it, the chances of getting one will depend entirely on your previous credit history. In most cases when dealing with large debt applicants credit history is usually poor.

If your aim is to bring all the debt into one place to reduce your monthly repayments then considering the option of a debt consolidation loan is advisable. When looking for these types of services it’s important that you look for a reputable company who can provide you with a number of financial services, these companies usually have the lowest interest rates and the most flexible repayment methods.

The idea of a debt consolidation loan can be worrying but the loans themselves have far lower interest rates than credit cards and are usually more helpful when it comes to clearing large debts. Unlike a credit card company or a bank providers of debt of debt consolidation loans are less likely to reject your application based on any factors other than your ability to pay the loan back or secure it against collateral.

The risks

Collateral, in the case of loans typically means property owned by the loan applicant – this is why they are sometimes referred to as homeowner loans. It’s important to know that if you default on this type of loan you will inevitably have your home taken and sold to pay off the outstanding debt, so before signing on the dotted line ensure you agree to realistic and manageable monthly repayments.
Often people worry about the large amount of debt they have, all they need to do is remember that no debt is that large that there is not a solution and worst case scenarios such as insolvency agreements can be avoided by taking steps like the ones above. The first step to becoming debt free is to find a solution that suits your circumstances best.