Persistent Debt Help & Support
If your lender has contacted you about persistent debt, we’ll help you understand what it means and what you can do next.
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What Counts As Persistent Debt?
Persistent debt is when you’ve been paying more in interest and charges than off your actual balance for at least 18 months. It usually happens when you make minimum payments on credit cards, store cards or catalogue accounts over a long period of time.
It’s more common than you might think, and many people don’t realise they’re in persistent debt until their lender gets in touch. The longer it goes on, the more it costs you overall, even if you’re keeping up with payments each month.
If you’ve had a letter or warning about persistent debt, it’s a sign that your balance isn’t going down, and now might be the right time to get support.
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Why You Might Receive A Persistent Debt Letter
Lenders are required by the Financial Conduct Authority (FCA) to step in when they spot signs of persistent debt. If you’ve had a letter, email or message from your lender, it’s because you’ve been making minimum payments for 18 months or more, without reducing the actual debt.
You could receive a series of letters over time like the following:
- At 18 months: Your lender will explain that you’re in persistent debt and encourage you to pay more each month if you can.
- At 27 months: They’ll remind you that interest is still building, and that action may be needed soon.
- At 36 months: If things haven’t changed, they may suspend your account or offer a repayment plan.
These letters are not there to scare you; they’re meant to prompt action. And if increasing your payments isn’t realistic, that’s where PennyPlan can help.
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Could A Persistent Debt Solution Help You?
If you’ve been contacted by a lender about persistent debt, or you’re struggling to make more than the minimum payments each month, it’s time to explore your options. Our aim is to help you find a manageable, affordable way forward; one that reduces the pressure and gives you a clear path out of debt.
What works best will depend on your personal situation. That’s why our friendly advisers take the time to understand your circumstances and explain the support available, from flexible repayment plans to formal debt solutions if needed.
Stop all interest & charges
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The Risks Of Staying In Persistent Debt And How To Break Free
Persistent debt can feel endless, even when you’re doing your best to keep up with monthly payments. But if you’re only covering the interest, the actual balance stays the same, and over time the debt becomes more expensive and more stressful.
Here’s what can happen if the cycle continues:
- You pay far more than you borrowed, without reducing the debt
- Your account could be suspended or closed after 36 months
- Your credit score may be affected, especially if you start to fall behind
- The stress builds, with no clear end in sight
But here’s the good news, you don’t have to face it alone. We help people explore affordable ways to deal with persistent debt for good; from setting up a Debt Management Plan (DMP) to finding out if an Individual Voluntary Arrangement (IVA) or Debt Relief Order (DRO) might be the right fit.
Every situation is different. We’ll help you understand your options and move towards a plan that actually helps you make progress.
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Can Persistent Debt Be Included In An IVA Or DMP?
Yes, if you’re in persistent debt, it’s often possible to include it in a formal debt solution like a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA).
If persistent debt is just one of several financial pressures you’re dealing with, we’ll help you understand whether a DMP, IVA or another solution could help you regain control and guide you through the process at your pace.
Get Support With Persistent Debt
If you’re stuck in persistent debt and struggling to make progress, now could be the right time to look at your options. Whether you’ve had a letter from your lender or just feel like the balance never goes down, you’re not alone and you don’t have to figure it out by yourself.
PennyPlan offers free, confidential advice that’s tailored to your situation. We’ll help you understand what support is available and guide you toward a solution that feels realistic and affordable. If you’re ready to take the first step, we’re here to help you move forward, get in touch today.
Get Help With Persistent Debt Today
We’ve helped people across the UK take control of their debts and get their lives back on track. Our trained advisers will assess your individual situation and guide you towards the best way to manage and resolve your finances.
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Persistent Debt FAQ's
What is persistent debt?
Persistent debt is when you’ve been making minimum payments on a credit card, catalogue account or store card for 18 months or more; and have paid more in interest and charges than toward the balance. It’s a warning sign that you’re stuck in a cycle where the debt isn’t going down.
Does persistent debt affect your credit score?
Persistent debt alone won’t automatically harm your credit score; especially if you’re making payments on time. However, if you’re unable to increase payments or your account is suspended, this could affect your credit file. The longer the debt continues, the more it can limit your financial flexibility.
Why have I received a letter about persistent debt?
Lenders are required by the Financial Conduct Authority (FCA) to contact you after 18, 27, and 36 months of persistent debt. These letters are meant to encourage action; either by increasing payments or seeking support.
Can I ignore a persistent debt letter?
It’s not a good idea to ignore it. After 36 months of persistent debt, your lender may suspend or close your account. If you can’t afford to increase payments, it’s worth speaking to someone about your options.
Can PennyPlan help if I’m in persistent debt?
Yes. We offer free, confidential advice tailored to your situation. Whether you’re unsure what to do next or already behind on payments, we’ll help you understand your options and take the next step with confidence.
Can Persistent Debt Be Included In An IVA Or DMP?
Yes, if you’re in persistent debt, it’s often possible to include it in a formal debt solution like a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA). If persistent debt is just one of several financial pressures you’re dealing with, we’ll help you understand whether a DMP, IVA or another solution could help you regain control and guide you through the process at your pace.