For a lot of people, credit card spending is a gateway to debt problems. There is a stigma surrounding the issue of credit card debt that has intensified since the credit crunch; the buy now and pay later attitude is no long in vogue. Now, thrifty is cool and being in the black is, well, the new black.

However, contrary to popular belief, a well managed credit card can sometimes be a cheap and efficient way to borrowing money. Serious debt problems will arise when you use your credit card debt to supplement your income. Making those regular, everyday purchases with your credit card, like using it to pay for fuel or the weekly shop, can be a dangerous habit to fall into. If you save your credit card for big ticket items that you’ve already saved and planned for, it can work out to be an efficient way to pay them off.

Shopping around for the best deal can secure a card that offers 0% interest on purchases and balance transfers, which means that you can borrow money without it actually costing you anything – as long as you stick to the terms of the agreement.

There is no denying the extra buying power that a credit card affords you. Be very careful about what you actually decide to do with it though. Buying things you don’t need purely because you can is a big debt danger. Spending irresponsibly can lead to late payments, penalty charges, blotches on your credit report and significant damage to your credit rating. This makes it much harder to secure credit and will tend to result in you paying a higher rate of interest.

If you don’t have a credit card and you’re considering applying for one, don’t go mad with the limit. Just because they’ve offered you a high limit, it doesn’t mean you have to take it. The more you’ve got, the more you’ll be tempted to spend. This is risky because if you struggle to make the payments it can turn into an expensive debt. Making affordable purchases and paying them off quickly is the only way to avoiding paying unnecessary interest.

Of course, Harrington Brooks are always on hand to help anyone who’s experiencing debt problems. Trying to buy your way out of debt with your credit card is never, ever a good idea. If you find yourself in a situation where you feel that the only way to afford your weekly shop, your bill payments or any other regular expenses is with your credit card, you need to talk to a debt specialist before the situation gets any worse. The longer you leave it, the more limited your options will become and the more serious a debt solution will be required to solve your mounting debt problem.

So, credit card debt needn’t necessarily be a problem. It can be a great way to borrow money cheaply but remember that it’s also fraught with potential problems. If you overstretch yourself and your financial situation changes, you could quickly find yourself if financial trouble.

The newly formed coalition government has announced plans to increase Capital Gains Tax. However, in addition to the extra tax charges, the move could also cost the UK economy as many as 61,000 jobs. The Government plans to raise the rate of Capital Gains Tax from 18% and potentially bring them into line with the tax applied to your earnings. So, for some people, Capital Gains Tax and Income Tax could be as much as 40 or 50 per cent.

Capital Gains Tax is applied when you sell off a valuable asset. This could be property, shares or other investments. This might not seem to impact too heavily on your finances, if you don’t think that you have significant assets but it’s been suggested that up to a million people will be caught out by this increased rate of tax each year.

The increase in tax aims of to counterbalance and fund the proposed income tax cuts for lower income households. However, as those that hold these valuable assets can decide when and if they want to sell, this increase in Capital Gains Tax could act as a deterrent, taking away any incentive to sell their assets and actually cause a drop in overall economic activity.

Taking a model from other European countries that have gone down this route, it has been estimated that an increase in Capital Gains Tax to 40% would actually result in a total cost to the UK economy somewhere in the region of £3-£5billion. To put it another way, that’s over 60,000 people losing their jobs.

Increasing Capital Gains Tax makes it more expensive for businesses to raise capital. The knock-on effect of this is often a drop in production and as a direct result of that, a smaller workforce. As we know, a sudden change in financial circumstances, like losing your job for example, is a common cause of debt problems. Regardless of the stigma surrounding debt, it is seldom caused by frivolous over-spending and irresponsibility. Getting specialist debt advice as soon as you find yourself in financial strife is key to a smooth, fast acting debt solution. The longer you let the debt go untreated, the more stressful the situation will become and the more limited the debt solutions that will be available to you. Get in touch with an advisor at Harrington Brooks and they’ll talk you through your options.

Ultimately, there was always going to be lasting fallout from the economic crisis and it’s going to affect people in different ways. On the surface, funding a cut in income tax for lower income households with an increase in Capital Gains Tax would seem to be a sensible solution. However, as we’ve seen, this cut in Capital Gains Tax has a knock-on effect that could result in substantial job losses for the workforce that was meant to be served by this drop in income tax. Financial security is about being prepared for these unforeseen eventualities.

Everyone faces different financial circumstances; their route into debt will be different, having come up against their own personal finance problems and unforeseen expenditures. So, what’s the one piece of iron-clad debt help that can be applied to each and every case? Get debt help fast.

The sooner you face up to your financial difficulties and ask a professional for debt help, the more options you’ll have available. There are a number of different debt solutions on the UK market and each is suited to certain circumstances. A financial solutions company, like Harrington Brooks, will have the experience to help you take the right action in tackling your debt problem. As one of the longest established debt help organisations in the country, they have the detailed industry knowledge to advise you of the best option to suit your situation.

Taking Harrington Brooks as an example, an established position of authority will facilitate an excellent working relationship a wide range of UK creditors. Their extensive knowledge helps them to tailor their debt help, giving them the ability to construct bespoke debt solutions for individuals who are struggling with debt.

This kind of intermediary debt help, with an established company acting as broker, makes you and your creditors more comfortable. Both parties have the sense of encouragement that comes from a credible, trustworthy party lending their support.

Debt, after all, is an extremely common problem but it is one which needs an individual solution. You are looking to achieve a swift resolution and your creditors are keen to be repaid as quickly as possible but it’s important that all parties remember that there is no such thing as a quick-fix debt solution. The debt help on offer from a dedicated, trustworthy organisation is comprehensive. It’s about solving your debt problem for life so it needs to be thorough. It will mean compromise and it will take determination but with the right debt help, it’s only a matter of time until you’re debt free.
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Once upon a time, it was easy to get a credit card in the UK. Tempting introductory offers of 0% interest were everywhere and balance transfers were free and easy. Well, although it doesn’t seem like long ago, those days are gone. That being said, there are still a staggering number of cards on offer to the UK consumer; a choice of more than 230 in fact. It’s the acceptance criteria that have changed. There seems to have been an attitude shift too; rather than courting new customers, lenders seem to be focussing on holding on to their dependable customers.

So, those with a solid credit rating and a steady job have their choice of good offers. Of course, you can still find the 0% balance transfer. However, there are now charges applied based on the size of balance you’re moving. If this is something you’re considering, there are a few things that you should bear in mind. The rates involved is the key point to consider but it’s also worth checking your rating with one of the three credit reference agencies; Callcredit, Equifax or Experian. Make sure there are no inaccuracies on your file and be sure to query anything that looks wrong.

Essentially, if your credit rating is poor, you’re going to struggle to be approved for more credit, well, any credit stream being offered at a reasonable rate anyway. You should probably look on this as a good thing, as strange as it sounds. Using credit to pay off debt is a very bad idea. This will be a sign that you have a debt problem and finding a solution to that should be your top priority.

Most balance transfer offers that seem too good to be true usually are too. Some will charge a high rate of interest on purchases. So, you’ll get some very temporary breathing space but build up debt even quicker than before. When the introductory 0% period ends, you should have paid off your debt or transferred it to another card. Often the 0% is balanced by high rates when the term ends.

This is not a solution to the problem of bad debt though. It just put the problem off and that is very seldom a good thing when it comes to your personal finance or any other problem. As soon as you find yourself in a difficult financial situation, seek out independent debt advice. Harrington Brooks are one of the longest established and most trusted financial institutions in the UK and their dedicated team of debt advisors are on hand to help you find a debt solution that best suits your personal circumstances. Visit their website and try the free Harrington Brooks debt wizard for a fast and free answer to your debt problem.

An ever popular New Year’s resolution is to get ourselves into shape. Perhaps more worrying than our own festive overindulgence though, is the workout that we have given our flexible friends during the season of goodwill. In fact, for the vast majority of us, the leanest thing about us this January will be our bank account. Sadly though, the opposite can often be said of the outstanding balances on our credit and store cards, which have gorged to bursting and are in need of a strict spell of forbearance. So tempting then, to take advantage of the enticingly low rates of interest that are encouraging us to transfer that big, fat credit card balance onto another card. That tempting 0% deal promises to give you valuable breathing space to trim down the debt – but is it the best option?

In the wake of last year’s festive overspending, more than £7bn worth of credit card debt was transferred between cards as customers searched for a better deal. Transferring your balance for free, in order to take advantage of a lower rate of interest, can help you to solve your mounting debt problem. The rates that are being offered by credit card companies are also a lot cheaper than they were this time last year. So, if you shop around, you can get a good deal. You have to be extremely cautious though. Whenever you are dealing with debt, there are risks and the advertised rates on offer may not tell the whole story. There is always small print.

A lot of attractive balance transfer offers come with a sting in the tail. For example, some will charge interest at a higher rate on any new spending; only giving you the advertised rate on the switched balance. So, you could get 0% on your transferred balance for the introductory period but any new debt will build up interest at an extremely high rate. Also, it’s important that you have either paid off your outstanding debt or you remember to transfer your balance again once the interest-free period runs out. You stand to be hit with a high rate of interest on the remaining balance if you don’t.

There are other debt solutions out there though. If you’re committed to getting your finances in shape and freeing yourself from the burden of bad debt, talk to a specialist debt advisor. Harrington Brooks are one of the longest established and most trusted financial institutions in the UK. Their dedicated team of debt advisors are on hand to help you find the solution that best suits your circumstances. Visit their website and try the free Harrington Brooks debt wizard for a fast and free answer to your debt problem.