This type of credit card may not have the lowest interest rates so if you will be carrying a balance it pays to check for the credit card that will give the lowest interest possible. Look at how many airline miles it takes to actually give you free flights or upgrades. If you have to spend a lot to get a small benefit and you can’t pay off the credit card each month it may not be the best choice. Business people that travel often would probably benefit from a credit card with this type of reward.

Another feature that some rewards credit cards have are merchandise vouchers to specific retail stores or online shopping venues.  If you shop at the particular store that is offered it may be the best credit card for your needs. Sometimes sports teams offer reward credit cards that can be used for their merchandise. The credit card works if you know you would use the merchandise vouchers on this type of reward credit card.

A rewards credit card may offer the most benefits to the credit cardholder because for every pound spent you get a certain number of points. These points accrue so that they can be used for many different things instead of just one or two. This credit card is more versatile as it has more options.

Whichever type of rewards credit card makes sense to you be sure that you check the many different offerings. Since the credit card industry doesn’t solicit for business with mailings very much anymore, potential customers must find other ways to get a rewards credit card. Going to an online comparison website is probably the easiest way to see what is being offered in the way of reward credit cards.

These sites will list a lot of the reward credit cards that are available. They present all the pertinent information in one easy to read format. Some even allow a potential customer to see if they qualify for the credit card before they actually apply. Once you have narrowed down the search for a reward credit card in this manner go one step further.  Go directly to the website of the reward credit card you have chosen. Sometimes you can find a different offer this way. It may be the same offer or it could be a better interest rate or longer introductory period. Only by doing due diligence will the new credit cardholder find the best reward credit cards.

If you look on Spanish credit card comparison sites you will see that rewards are standard on all their cards. This is a thing that they use as a standard marketing tool in Spain.

However, help is available. There are various debt solutions that could help you tackle your debts. A brief look at two of them…

Debt management plan

Debt management plans can help people who can’t keep up with their payments to their debts. A debt management plan is an informal agreement between you and your lenders which involves a ‘re-arrangement’ of how you will repay your debts.

If you enter a debt management plan via a professional debt management organisation, they will try to negotiate with your creditors for lower monthly payments based on what you can actually afford. They may also ask your creditors to freeze/reduce interest and other charges, which means that you will be able to clear your debts more quickly.

You can do all this on your own, but many people still opt for the convenience of a professional debt management plan.

Either way, it will have an impact on your credit rating for six years, and can increase the overall cost of repaying your debt, as repaying it more slowly will mean it’s accruing interest for longer (unless your
creditors have agreed to freeze interest).

IVA (Individual Voluntary Arrangement)

An IVA is a legally binding agreement between you and your creditors. An IVA might be suitable for you if you had a high level of unsecured debt that you couldn’t afford to repay, but you could commit to making reduced monthly payments.

Before an IVA can go ahead, voting creditors who ‘own’ at least 75% of your debt will have to approve of the terms laid down in your IVA proposal. This proposal will be drawn up by you and your IP (Insolvency Practitioner), and will detail how you propose to repay your debts.

When the IVA begins, you will (in most cases) start making monthly payments to your IP, who will subsequently distribute this money amongst your creditors as agreed.

An IVA will usually last for 5 years, after which (assuming it has come to a successful conclusion) any remaining unsecured debt will be written off.

Note that an IVA will have a significant impact on your credit rating for six years from the time it begins.

If you are struggling with your finances and want help addressing your debts, then you should contact a professional debt adviser. The right debt adviser will be able to tell you if a debt solution could help you.