Key points
- Credit cards are non-priority debts
- Card providers must help customers in persistent debt
- You can ask to freeze interest or reduce payments
- Credit cards can go into most debt solutions
- Balance transfers only help if you can clear the balance
Persistent debt
If you've paid more in interest and charges than off the balance over 18 months, your card provider must contact you about it. If this goes on for three years, they must offer you a way to repay in a reasonable time, which can include reducing or freezing interest.
Talk to your card provider
Lenders must treat customers in financial difficulty fairly. You can ask for a payment plan, a break, or reduced interest. Have a simple budget ready to show what you can afford.
Balance transfers
A 0% balance transfer can help if you have a good credit score and can clear the debt before the offer ends. If you're already missing payments, it's unlikely to be the answer.
Debt solutions that include credit cards
Credit card debt can be included in a debt management plan, an IVA, a Debt Relief Order, a trust deed, DAS or bankruptcy, depending on your circumstances.
Frequently asked questions
Is credit card debt a priority debt?
No. It's non-priority, so pay rent, council tax and energy first.
Can credit card interest be frozen?
Your provider may agree to freeze or reduce interest if you're struggling, and some debt solutions freeze it.
Will missing payments affect my credit score?
Yes. Missed payments and defaults are recorded on your credit file.
Free debt advice is available
You can get free, impartial debt advice from not-for-profit organisations through MoneyHelper's debt advice locator.
Sources and further reading
This guide is general information, not advice, and was correct when last updated. Rules and limits can change. Speak to a regulated adviser about your own situation.