Debt Help On Its Way

If you find yourself in a vicious circle of debt with a number of credit card or store card providers then you will be pleased to hear that the government have met with the top lenders to conjure a deal which will ease the strain off struggling borrowers. The meeting was held by government officials and included the UK's biggest credit card providers including Lloyds TSB, Capital One and Barclaycard.

The meeting was held to obtain fairer terms for borrowers and the result of the meeting ending in the credit card providers giving borrowers 30 days to set up a repayment plan with a debt advisor. They also agreed that they would consider how the rate is given on the same cards to different customers and that the bank of England base rate would affect this.

Debt charities where extremely pleased from the results of the meeting, a charity official said that “It is a positive step that the industry has agreed to discuss the situation surrounding re-pricing. Consumers do not understand why credit card interest rates continue to climb while the base rate is falling.”

This is a great result as there has been uproar from the public as the rates increased when the base rate did but as soon as it started falling; the credit card rates stayed stationary. The credit card companies may have done this as a result of actions forced upon them back in 2006 when they were forced to cap there penalty charges to £12.

If you want a credit card you should not exceed your situation, stay well within your limits to avoid any debt problems.

By: Barry Loughran

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