It has been quite rightly pointed out by Martin Lewis that credit cards are better described as ‘debt cards’. When you use one, a credit card provider will lend you the money for free provided that you pay it back at a later date. If you don’t, you will be hit with hefty interest rates and accompanying fees.

An increasing number of British families are relying on credit cards to see them through from month to month. For example, in January of 2018, credit card debt rose by an incredible 10%. This is not sustainable but Thrive can help you tackle credit card debt once and for all.

These lethal cards function in a similar way to credit cards but for one store or company. They allow you to shop on credit to pay back at a later date but carry interest rates significantly higher than even credit cards.

What makes store cards even more unfair is that they lure you in with promises of bonuses and instant discounts. The best method of avoiding trouble is to avoid these cards altogether. However, if you have built up a store card balance which you cannot pay off give us a call immediately.

Payday lending has become an increasing target for the government in recent years. Recent legislation has limited how much these lenders can make, yet since the companies still exist, we are evidently not out of the woods yet.

These loans take advantage of people in desperate situations, providing massively expensive loans to people who have a good chance of never paying them back. There is a way out, however, and it all starts with a phone call.

Overdrafts are a particularly easy debt to fall into as in many ways it feels like ‘free’ money. However, this is far from the case. It is a very expensive method of borrowing with ridiculous interest rates and crippling charges.

While the FCA is taking steps to regulate overdraft borrowing, it has done nothing thus far to change the fact that an increasing number of British families are relying on bank overdrafts to make it from month to month. This is an unsecured debt, and there are solutions.

Owing money to the government is much more serious than owing money to a private company. This is because they have many more powers at their disposal in regards to getting their money back. Since local councils are government bodies, these are absolutely a priority debt.

If you miss a council tax payment, you will receive a let of warning. If you do not pay after the given time, you will be asked to pay the total you owe for the year, losing your ability to pay in instalments. If you take this even further, the government may take money directly from your bank account, which can make it increasingly more difficult to manage your finances. When you owe money to the government, make sure to contact us immediately.

Again, owing money to the tax man can have serious repercussions. While most people have their tax dealt with automatically by your employer, for self-employed workers becoming indebted to HMRC is an incredibly serious issue.

Whether your debt to the HMRC has come around due to an unexpected change in profits, a mistake in your tax form, or any other reason, it is essential you deal with it sooner rather than later as extended cases can result in a criminal sentence and even jail time.

Similar to owing money to the government, owing money in regards to property can have much more severe and immediate repercussions than owing money to a regular private company. This is because if you can’t pay up, you may be forced to leave your property. Because of this, this type of debt should be paid as a priority.

Last on this list is yet another priority debt. Again, this is because energy/water providers have yet another tool in their disposal not available to other companies. If you cannot pay your energy bills, then the lights will go off. Make sure your energy bills are paid before non-priority debts.