Abacus Daily Debt News

Debt Jugglers start to feel squeeze

Credit card “rate tarts” who rely on being able to shift their debts on to a succession of temporary interest-free deals could struggle to get accepted for a new card as the credit crunch hits plastic, say experts. Those approaching the end of their current 0% deal who have not managed to clear their debt will want to switch to avoid hefty interest charges, but with banks tightening up lending criteria many will find they get turned away.

Around 3.27 million applications have been turned down in the last 6 months compared with 2.7 million for the same period last year, according to new research from moneyexpert.com

If people do get turned down for a new deal they are likely to find themselves going from 0% to an average 16.5% APR, or even worse, a nasty shock if you are unprepared. With mortgage costs rising steadily recently, this could be disastrous news for those who are already feeling the pinch.

Call now if you feel that your finances are being stretched ever tighter, or just for some general, free, impartial advice on debt management plans, IVAs or other debt solutions.