More people are struggling to make credit card payments as rising living costs put pressure on household budgets, according to the Bank of England. Lenders have warned that the number of missed payments is likely to keep climbing this autumn, increasing the need for reliable debt advice.
While seeking help for financial troubles, it's crucial to avoid unscrupulous debt solutions. Many online ads, social media posts, and cold calls promise quick fixes but often come with hidden fees or unrealistic claims. To find trustworthy help, the UK government advises using authorised debt advice services listed on the Moneyhelper website.
The Financial Conduct Authority (FCA) warns that some unregulated firms impersonate debt charities or collectors to gather personal details and then refer individuals to fee-charging debt solutions. Red flags include pressure tactics, repeated contact, and steering people toward expensive plans like Individual Voluntary Arrangements (IVAs) without explaining all options.
Experts recommend getting full, free, and impartial debt advice before making any decisions. Vikki Brownridge, chief executive at debt charity StepChange, emphasises the importance of exploring all sustainable options to manage debt safely.