Credit Cards Set To Be Suspended In February

By 8th January 2020Financial Help, News
credit-card-debt

Credit Cards Set To Be Suspended In February

Come February, thousands of people will be unable to use their credit cards due to new rulings.

As part of new rules designed to help people in debt, the FCA has made the banks agree to force those who are continually in debt to agree a repayment plan – and in doing so, suspending the use of their cards.

Whilst we agree that this is a good idea in principle, it could massively backfire on those who continually live on borrowed money through their credit cards:

Myles Fitt of Citizen’s Advice Scotland said: “Persistent credit card debt is being tackled by the FCA and some people who have not been paying off their credit cards may be in for reality shock in the new year if they have been ignoring persistent debt letters coming through their letterboxes.

“These changes will help some people to pay off their debts quicker but we’re ­concerned about people who are forced to live in persistent debt because of insecure incomes in the first place.

“These changes could be a real problem for people who are ­unable to come to an ­arrangement with their credit card lender and this may trigger an increased demand for help with debts.”

Clear All Of Your Debts

The FCA has estimated that about 5.6million credit card accounts are held by customers who are struggling financially across the UK. Credit card companies have been ordered to send at least three letters to customers warning them to raise their payments. Firms must then offer ­alternative ways of repaying more quickly, usually over a period of three to four years. These could include transferring a credit card balance to a personal loan with lower interest.

Rather than taking four years to clear your credit card, you could clear ALL of your debts in just five years. Talk to our friendly advisers who can advise you of all of your options.

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