Abacus Daily Debt News

Debt help may be needed for non-switchers

Those with credit card debt may find they need extra help if they are unable to switch to a cheaper account.

With large balances having been built up by many ahead of Christmas, January is a time when a lot of consumers will seek to get their debts under control and MoneySupermarket.com has sated that those who switch to a zero per cent card can save hundreds of pounds.

Head of loans and debt at the site Tim Moss said: "Moving onto a zero per cent interest product is a no brainer - it allows you to pay off your existing balance over time without accruing additional interest."

However, some who are in debt may find they are turned down for a card, not least if they have missed payments on their existing account and have thus harmed their credit rating.

In such instances, struggling consumers may find a debt management plan is the best way forward - or even an individual voluntary arrangement if the debt is over £15,000 and unmanageable.

According to Credit Action's latest figures, total UK personal debt stood at £1.451 trillion at the end of November 2011.

By James Francis