Licensed Insolvency Trustees
Licensed Insolvency Trustees
Credit card debt
We understand how overwhelming and stressful credit card debt can be. At Mallette Redressement financier, our team of experts is here to help you understand this complex subject and find solutions tailored to your financial situation.
Credit cards with high interest rates can lead to over-indebtedness
Credit card debt can quickly become a sign of a poor financial position. When you are unable to pay off this type of debt, it can have serious consequences for your credit rating and your ability to borrow money in the future. What's more, interest rates on credit cards are generally much higher than on other types of loan, which means that your debt can increase rapidly if you fail to repay on time.
The minimum payment on a credit card may seem attractive, as it is obviously lower than the total amount owed. However, it barely covers the interest, which means you're not actually paying off your debt. Instead, your debt continues to accumulate and can become increasingly difficult to repay.
If you find yourself in a situation where you can no longer make the minimum payment on your credit cards, it's important to take steps to avoid getting deeper into debt. A meeting with one of the advisors at Mallette Redressement financier can help you evaluate your options and find the best solution to get you out of your challenging financial situation.
Frequently asked questions
What are credit card debts?
Credit card debts are amounts of money you owe your credit card issuer for purchases made on credit. These debts can accumulate if you don't pay off your balance in full each month.
Why can credit card debt be a sign of a poor financial position?
Credit card debt can be a sign of a poor financial position, as it indicates that you are spending more than you earn and may be struggling to repay your debts. This can have a negative impact on your credit rating and your ability to get a loan in the future.
What is the difference in interest rates between a credit card and other types of loan?
Credit cards generally have much higher interest rates, often 10 or 15% higher than other types of loan such as mortgages or car loans. This means that if you don't pay off your credit card promptly, your debt can increase considerably because of the interest that accumulates.
Meet with an advisor to sort out your debt problems
Are you concerned about your financial situation? Our advisors have several solutions to help you regain peace of mind.
Our qualified team will listen to you and answer all your questions. Call us today!