What is Persistent Debt and how is it affecting me?
If you've only been making small repayments on your Credit Card or Storecard over the last 18 months you may have paid more in interest, fees or charges than towards paying off the amount you have borrowed on the Card. Under new rules, issued by the Financial Conduct Authority (FCA) this means that your account may be classed as being in 'Persistent Debt' and our aim is to help you avoid long term debt and also keep money in your pocket.
How would I know if I was in Persistent Debt?
If your account was deemed as being in Persistent Debt you may have received a letter from us, advising you that increasing your monthly payments would help you reduce your debt, lowering the amount of interest you would pay and cutting the overall time it takes you to pay back your balance. We will continue to review your account to see how you're doing with trying to pay more off each month over the following 18 months.
What are my options?
By paying a bit more each month over a regular period, you may actually save money in the long run by reducing interest payments and pay off your balance sooner. You can use the Calculator below to work out a monthly amount that ultimately helps to bring your account out of Persistent Debt.
If you are concerned about your financial situation please contact us on 0371 376 9214 to speak to our Customer Support Team. You could also contact one of the organisations at the bottom of this page that offer free and confidential support and advice.