Credit cards can serve as a safety net for unexpected expenses while also providing an extra layer of consumer protection. However, these benefits only apply when you can manage to pay off your card balance each month to avoid interest charges.

It’s commonplace to find yourself on the tilting edge of maintaining the minimum payments. At such moments, the credit card companies often decide to take measures that trigger distress.

The scenario gets disquieting when legal threats loom due to consistent difficulties in meeting the monthly payments, as was the case with a concerned individual.

The individual queried:

The credit card company has issued warnings of court action following my inability to stick to the monthly payments. What’s the next best step?

Here is what Advice Direct Scotland had to say:

Credit cards are classified as ‘non-priority’ debts, but it doesn’t diminish their importance. Ignoring the debt doesn’t make it go away; instead, it triggers a ripple effect on our financial status and the possibility of procuring affordable credit facilities in the future.

When we default on our financial obligations like credit cards, store cards, or personal credits, our creditors often turn to legal action to recoup their dues.

A ‘County Court Judgement’ (CCJ) might crop up during this process. This legal court judgement is brought against a debtor who fails to reimburse their creditor’s money. This is practised in England, Wales, and Northern Ireland.

In Glasgow and the rest of Scotland, we refer to a similar kind of judgement as a ‘decree’. Some folks might use CCJ and decree interchangeably, but the distinction between them is crucial.

Registry Trust maintains all records containing all decrees, which are supplied by the Sheriff Courts, for the past six years.

Every decree, recall, and dismissal from the Registry Trust is regularly provided to credit reference agencies. These decrees remain attached to the credit file of the debtor for six years and are classified as ‘satisfied’ upon full settlement.

In Scotland, the process varies from England and Wales since there’s no submission of a certificate of satisfaction. Instead, the creditor receives a letter of satisfaction, containing details of the original court action, from the pursuer of the courthouse action.

Make no mistake; ignoring your debt is not an option. Failing to address your debt issue only catalyzes the creditor’s drive to recuperate the debt through court action.

The first step should be to reach out to your creditor and discuss your present financial condition. Engaging them might prompt them to offer alternative repayment solutions or even suspend the interest on the balance.

If negotiation with your credit card provider fails or if your debt problems persist, help is still available.

Advice Direct Scotland operates moneyadvice.scot, which provides free, pragmatic, and unbiased advice on a broad spectrum of debt-related matters.

Experts from their team can assist you in chalking out your income and expenditure plan helping you decide the best forward move.

You can call them directly at 0808 800 9060, from Monday to Friday, between 9 am to 5 pm, or visit www.moneadvice.scot for further details.

Free, neutral advice on any issue is also available from advice.scot. You can reach them at 0808 800 9060 or visit www.advice.scot. Their services are accessible to everyone in Glasgow and across Scotland, irrespective of personal circumstances.