Persistent Debt

What is persistent debt?

If you've paid more interest and charges than you've paid off the amount you borrowed over an 18 month period, this is considered persistent debt by the Financial Conduct Authority.

What do I need to do if my account is in persistent debt?

Can you afford to pay more?

Increasing the amount you pay could help you save money and clear your balance sooner to prevent long term debt.

Make extra payments when you can

If you only pay the minumum each month it'll cost more and take longer to repay your balance - try to pay more if you can.

Get in touch

If you think that increasing your payments could be a struggle for you, please let us know and we'll do what we can to help.

FAQs

How will I know if my account’s in persistent debt?

If you’re in persistent debt we’ll get in touch by letter or email to let you know and advise you of what actions you can take to help improve your situation.

I’ve received a letter or email from you saying I’m in persistent debt – have I done something wrong?

No, you haven’t done anything wrong – lots of customers making minimum or low repayments have been sent a letter or email.

What do I need to do if my account is in persistent debt?

We suggest you look at your finances to see if you can afford to increase the amount you pay each month. You could also try to make extra payments where possible. Taking these actions will clear your balance sooner and you’ll pay less interest.

Do I have to pay my full balance in 18 months?

No, we’re not asking you to pay off your balance. You just need to pay more of the amount you’ve borrowed compared to the amount of interest and charges.

What if I don't increase my payments?

We'll regularly review your account and we'll contact you again if we find that your position has not changed. To prevent you from getting into further debt, we may have to suspend your account. If this happens you won't be able to shop on your account until we've agreed an appropriate plan for you to repay your outstanding balance. We may also make the credit reference agencies aware of your circumstances.

Can I just pay my minimum payment?

Yes, you can still pay just your minimum payment if money is tight one month. However, we would recommend increasing the amount you pay each month to help improve your situation.

What if I can't afford to increase my payments?

If you think that increasing your payments could be a struggle for you, please let us know and we'll do what we can to help. You can contact us on 0800 092 9042, lines are open Monday - Friday 8am-9pm or Saturday 8am-6pm.

Alternatively, if you're experiencing significant or potentially long-term financial difficulties, it may be beneficial to contact a debt advice service. StepChange Debt Charity offers free, impartial and confidential advice; you can visit their website at www.stepchange.org or contact them on 0800 138 1111.