Persistent Debt — Avoiding Long-Term Credit Card Arrears

Persistent Debt

Making a minimum payment on your credit card will not be applicable from now. As per the new rules and regulations released by the Financial Conduct Authority, you will obviously receive a letter from the credit card company to increase the amount of payment. 

People who are paying within the time span of 18 months or more are included in the matter. Thus, your account is in Persistent Debt. All these guidelines were only for the credit card holders, a few days back. But, now the new rules of the FCA are applicable to in-store cards and catalogue cards too. 

What is the Purpose of Writing a Letter?

The purpose of writing a letter from the credit card company is not only to increase the payment amount but also to make you aware of the other repayments. The letter contains all the detailed information about the previous amount and the increased amount. Other than that, there will be a few terms that will be present in the form of warning, what can happen in case of the continuation of low payments. 

Can your Credit Card get suspended?

Yes, your credit card can get suspended due to the presence of the Persistent Debt for a minimum of 36 months. As per the expert’s suggestion, ignoring any type of suspension notice will not be fruitful. After a certain time, the consequences are inevitable. So, the best option will be increasing the monthly payment to save the suspension. 

Getting out of the Persistent Debt

There are several ways by which you can get out of the Persistent Debt. Before that, creating your own monetary budget will be helpful. Here are some of the effective ways to eliminate Persistent Debt: 

  • Never skip any payments
  • Pay the desired amount every month
  • Utilize any possible Windfall payments
  • Maintain the credit balance, consistently

You have to be careful of your monetary budget at the end of every month. So, spend the money in such a way that no extra amount is needed. 

Affect on the Credit Score?

Check your Credit Score, if it is from 18 to 27, then relax, the Persistent Debt will not harm your Credit Score. If you continue to pay more than the least amount, it will never affect your credit score. If any issue occurs like cancellation of credit card, suspending account, and others, there is a high chance that the Credit Score will get affected. 

What can you possibly do to increase the payment amount?

You have to do the best you can to increase the amount on the credit card. Always remember that there are also other charges and interests included in there. So, here are some of the effective ways that will help you in increasing the credit card amount. 

  • Stop the Extra Expenditure

It’s easy to say, but somehow hard to do. On the other hand, if you think about it, then it’s one of the best solutions available. The more things you buy, the greater the number of expenses you have to bear, so make it limited. Only buy those assets which are mandatory for your daily life. Leave aside luxury, and focus on necessity. 

  • Maintain communication with the provider

When you are in Persistent Debt, the credit card company may stop charging interest from you. This will depend on how good you are at communicating with the company, as well as interests including the previous payments. The amount you save, you can include in paying the debt. 

  • The credit card switch over

A better deal always leads to better payment. If possible, you can switch to another credit card company. If you do so, then never forget to transfer the Persistent Debt. Before transferring and switching, always let the previous company know about this matter. 

Changes in the Repayment Date

A situation might occur when you are not having enough money to pay. In such cases, always try to change the date of payment. As per the expert’s suggestions, it is better to set the date at the beginning of the month. Hopefully, if the salary comes with extra added benefits, you will be able to repay the Persistent Debt. 

Willing to work some extra hours?

Of course, you can. If your organization have this kind of facility, you can earn more money apart from the fixed salary. This will help you to increase the credit card balance, as well as repay the debt as well. On the other hand, your credit score will also remain intact. 

How can you make payment with the Credit Card?

Credit cards always work on the current account. That is why the money will be deducted from the current account. While making the payment, provide the sort code and account number correctly. After that, a 16-digit code is already there on the credit card. Carefully, put in its desired place and make the payment, successfully. 

The Consistency of Persistence Debt

As you already know that there are new rules and regulations from the FCA. That is why all the debt management and credit card organizations are on the verge of helping people to get out of Persistent Debt. 

This debt lasts for 36 months and if you are willing to end it earlier, then a 48-month payment plan might be eligible with proper assistance. All you need is the contact of a good persistent debt management company. Arrange a meeting and tell them all the details. After that, follow their orders. 


As a citizen of the United Kingdom, there are many debt management organizations that are there to help. Some of them are like Money Advice Service, StepChange, National Debtline, Citizen’s Advice and many more. Always try to fix an appointment by visiting their official website, send an email or call them to sort your queries. If you are living in Scotland, then the experts say that National Debtline will be more helpful for you.