PPI Claim News - 5/8/2011
Credit card charges: People in debt 'have options'
Consumers who are having trouble paying off credit card charges because of debt have a number of options available to them.
Neil Munroe, external affairs director for Equifax, explained that there are different options depending on what level of debt the person is in.
He said: "In the very early days [of debt], the best piece of advice is to go to the lender concerned and explain the situation and see if you can arrange a renegotiation of that debt.
"That's becoming more and more possible these days because obviously there's a lot more people getting into circumstances beyond their control."
If people are in serious debt, Mr Munroe explained they may be advised to take an individual voluntary arrangement (a form of insolvency), or, in the worst case, they may face bankruptcy.
Mr Munroe does not recommend bankruptcy, but noted that in some cases, it is the only option.
Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

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