I currently have £20k worth of credit card debt back dating about four years now and spread across four cards.
My credit score isn't the best and therefore I can't do any balance transfer on the credit cards due to this.
Prepaid Cards: Prepaid cards are very similar to debit cards, except that they are not linked to a bank checking account.
As a result, using a credit card will impact your credit score.
Debit Cards: Debit cards are issued by banks and generally are tied to a checking account.
Low cost prepaid cards are a safe, convenient way to manage money for those that want to avoid credit and are unable to qualify for a checking account (usually because of Chexsystems).
But don’t count on an increase in your credit score from a prepaid card. For example, you may be able to qualify for a store credit card (e.g., Sears or Home Depot).
However they typically not going to be household names or high street lenders, so seek advice from a broker who may be able to help.
The other important thing to remember is that you will be turning unsecured debt into secured debt - and with any sort of loan that is secured on your property your home is at risk if you do not keep up your repayments.
I was wondering if you would know the best solution for this or if there is in fact a solution for me to get around this, as I want to get all my debts in one place and pay the credit cards off ASAP otherwise it is a never-ending circle. Debt central: It estimated that a further two million have “persistent levels of debt”, which some maybe struggling to repay and that another 1.6million are only making the minimum required payments on their credit card debt every month It estimated that a further two million have “persistent levels of debt”, which some maybe struggling to repay and that another 1.6million are only making the minimum required payments on their credit card debt every month.
But despite feeling like you do not have many options, there are the some routes you could take.
While debit cards today look like credit cards, including the Visa or Master Card brand, they are more akin to writing a check.
When you use a debit card, the cost of the transaction is taken out of your checking account.
As a result, prepaid cards generally do not help you build your credit.