Credit Card Borrowing

George asks this question:

I’ve read recently about the Government cracking down on credit cards, which would see borrowers being forced to pay back more of their credit card debts each month. I’m in a bit of financial difficulty at the minute, and so I couldn’t really afford to pay back any more than the minimum amount each month. Should the Government raise the minimum monthly payment, is there any way I could come to some sort of agreement with my bank about this?

I have one simple piece of advice for you here. Borrowing on a credit card is just about the most expensive way of accumulating personal debt and if I were you, I would try my very best to shift that borrowing onto a different kind of facility – a personal loan for example.

It is always best to talk to your bank and I would start by talking to your bank and seeing whether they are willing to reschedule your debt onto a term loan. On the Government policy issue, I think this will take a long time to come to fruition, if ever, because as you rightly say, there are an awful lot of people who are simply unable to increase the amount they pay today.