We’ll write to you to tell you’re in persistent debt and encourage you to increase your minimum payment.
Persistent credit card debt, also known as long term credit card debt, applies when you’ve paid more in interest, fees and charges than you’ve paid back on the amount you’ve borrowed over an 18 month period.
We are taking steps to support our customers to pay more towards their credit card balance and manage their finances better. This reflects the rules that have been introduced by the Financial Conduct Authority (FCA) with the aim of helping customers avoid long term credit card debt.
If you are still in persistent debt we’ll write to you and ask you to increase your payments.
If you don’t want to, or are unable to pay more we will suspend further use of your credit card so you can’t keep spending on it.
Your minimum payment is displayed on your credit card statement. You’ll also find it on our mobile app and in Digital Banking.
App available to customers with Digital Banking, compatible iOS and Android devices and a UK or international mobile number in specific countries.
You can call us by phone or Next Generation Text (NGT) on 0345 030 3574, and we’ll help you calculate the potential savings you could make by increasing your monthly payment
A good guide is to try to make sure how much you pay is at least double the amount of the interest, fees and charges showing on your statement.
In some cases you may need to pay more than this so it’s a good idea to call us and we can make sure this is affordable for you.
The following is an illustration only.
The example below illustrates a customer with a credit card balance of £3,000 and interest rate 18.9% APR. These calculations are an illustration and assume that there is no additional spending on the card.