Debit Card Debt Help & Advice
Debt is often described in negative terms. But borrowing money, or ‘taking on debt’, isn’t necessarily a bad thing. Manageable debts, that you can comfortably pay back over an agreed period, are often necessary in order to take that next step in life.
It’s only when debt repayments become unmanageable or unaffordable that debt becomes a problem.
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Debit Card Help & Advice
Debit cards aren’t designed for borrowing, but it’s still possible to get into debt by using one.
When someone uses their debit card to make a payment, they are using their own bank account. With the exception of any related transaction costs, the user also doesn’t owe any money because the money used in the debit transaction came from the available funds in the user’s bank account.
If you make a payment or withdraw cash using your debit card, but you don’t have enough money in your account, you will go overdrawn and may incur an additional fee.
Overdraft charges and overdraft interest can quickly add up if you don’t make a payment to cover them (especially if you keep spending). In some cases, even if your debit card payment is declined, you can still be charged a fee that takes you into your overdraft – and be in debt before you know it.
Incurring this kind of debt can have an impact on your credit score and may also result in you losing any benefits, rewards or discounts associated with your bank account.
Common causes of debit card debt:
- Withdrawing cash when you don’t have enough money in the bank
- Making debit card chip and pin or contactless payments when you’re unable to cover them
- Attempting to make a payment that results in a charge from your debit card provider
How to keep on top of debit card debt:
- Always check your balance before withdrawing cash or making a payment
- Use an app or online banking to keep up to date on how much you’ve spent
- Set yourself a weekly spending budget and stick to it
What to do if you have debit card debt?
If you’re struggling with debit card debt call us now for immediate and confidential free debt help & advice or complete the form.
We can start to work through your debt problems as soon as you contact us.
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