Answers To Difficult Credit Card Debt Problems
FAQ - Debt Help, Balance Transfers and Stopping Card Fraud
Nov 29, 2008
Avoiding credit card debt is a priority for those who seek to maintain solvency. It is possible to avoid paying interest or even receive debt help through entering a Debt Management Plan if struggling with serious debt problems.
This article seeks to answer questions about minimising interest and reducing credit card debt. Prevention is better than the cure so learning how to play the system can save money. For those that are struggling, there are a number of excellent debt solutions available once credit counselling has been received.
Is It Possible to Avoid Paying Interest on Credit Card Debt?
The best way to avoid paying interest and stay out of debt is by settling in full each month before the interest-free period ends. No card immediately charges interest on purchases, but the amount of time extended does vary considerably between card providers.
Every credit card offers an interest-free period of up to 56 days on purchases so check the T&C's to see how much time is afforded. Once this time elapses, interest is added and further credit card debt created. Setting up a direct debit to settle in full ensures that no interest is ever paid.
The other way to avoid paying interest is through performing a 0% balance transfer to a new provider to take advantage of a special introductory rate. This is the best way of preventing credit card debt, without impacting on savings.
Multiple Credit Searches Are Showing For a Single Credit Card Application
Credit searches stay on personal credit files for a period of 12 months. Having too many searches can be detrimental when applying for other sources of credit. This can make it difficult to get out of debt and avoid paying interest through future credit card balance transfers.
It is best to get this matter corrected. It is possible to write to the respective credit reference agency and ask them to contact the company concerned to have the entry deleted. Once it is confirmed that the further checks shouldn't have been performed, it will be removed.
What to do If Credit Card Fraud Occurs
It is vital to regularly check statements to make sure that credit card fraud hasn't taken place. If struggling with bills, the last thing needed is credit card debt from purchases not legitimately made by the card holder. If a transaction is identified that isn't recognised, contact the bank to ask what company the payment has been made to.
If the transaction isn't recognised it is imperative that the credit card is stopped and a chargeback issued to recover the funds from the merchant. Any chargeback must be issued within 6 months, although some financial institutions do allow up to 2 years.
The credit card provider will quickly credit the amount fraudulently appropriated, but the merchant has the right to appeal. Don't spend the refunded money until confirmation that the matter has been finalised.
Gather as much knowledge as possible regarding dealing with credit card debt, credit card fraud and how to avoid paying interest. Knowledge is power and acting swiftly to avoid problems can prevent a number of problems from ever happening.
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