Help With Credit Card Debt

It often starts small. £30 here, £20 there. A takeaway on Apple Pay, a food shop spread over a few months, a balance transfer that never quite comes down. Credit cards make spending easy, but repaying them is another story. With the average credit card APR in the UK sitting at around 24-25%, balances can grow quickly.

At NDH Financial, we help people across England, Wales and Northern Ireland who are stuck in this cycle. We’re licensed insolvency practitioners, with an in-house Insolvency Practitioner who has over 15 years’ experience helping thousands of people deal with unsecured debt, including credit cards.

For many, an Individual Voluntary Arrangement (IVA) is a way to combine credit card debt into one monthly payment based on what you can actually afford. Your Insolvency Practitioner will work with you to review your income and essential costs, deal with your card providers, and freeze interest and charges. Many people repay only part of what they owe, with debt write-off levels of between 25% and 73% being realistic in some cases*. Any remaining qualifying unsecured debt is written off at the end of the IVA**.

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What is credit card debt?

Credit card debt is money you owe after using a credit card and not clearing the balance in full. Instead of paying for something outright, the cost is spread over time, with interest added to the unpaid balance each month.

Most UK credit cards work on revolving credit. You’re given a limit, you spend up to it, and you’re asked to make a minimum payment each month. The problem is that minimum payments are deliberately low. They often cover little more than the interest, which means the balance barely moves.

This is how credit card debt drags on. A £2,000 balance at around 24% APR can take years to clear if you only pay the minimum, and you may end up paying back far more than you originally spent.

Credit card debt is classed as unsecured debt. It isn’t tied to your home or car, so it’s not a priority debt like rent or council tax. That said, falling behind can still lead to defaults, debt collectors, County Court Judgments, and serious damage to your credit file.

What is persistent credit card debt?

Persistent debt is when you’re paying towards your credit card each month, but your balance barely goes down. This usually happens when most of your payment is being swallowed by interest rather than reducing what you owe.

Under Financial Conduct Authority rules, you’re classed as being in persistent debt if, over an 18-month period, you’ve paid more in interest and charges than you’ve paid off the balance itself. This is common when you’re only making the minimum payment.

Lenders are required to contact you if this happens. You may receive letters explaining that your debt isn’t reducing and encouraging you to increase payments, set up a repayment plan, or clear the balance. These letters don’t mean you’ve done anything wrong. They’re a warning that the debt is stuck.

If persistent debt continues, card providers can restrict or suspend your account. By that stage, many people are already struggling with multiple cards and rising balances. This is often when formal credit card debt help becomes necessary, especially where interest rates are high, and repayments no longer make a real dent in what you owe.

Persistent debt can also be a problem if you have store cards or catalogue debt.

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NDH Financial can help free you from the shackles of your debt.

Call us on 0800 002 9051 or apply below.

If you’re an existing client, please call us on 0800 002 9061.

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Causes of Credit Card Debt

Credit card debt rarely builds for one single reason. It’s usually a mix of how cards work and what’s going on in day-to-day life.

High Interest Rates

Most UK credit cards currently have a high APR, which means a large chunk of every payment goes on charges rather than reducing the balance. Even steady payments can leave you going nowhere.

Multiple Credit Cards

It’s common to have more than one card. Over time, repayments are spread across lenders, and the total becomes harder to track.

Minimum Payments

Minimum payments are set low to look affordable. In reality, they keep you in debt longer. Paying the minimum often means you’re covering interest first, with very little coming off what you owe.

Changes in Circumstances

Job loss, reduced hours, illness, separation or rising household bills can quickly turn manageable balances into a problem. Credit cards are often used to plug gaps when income drops.

Using Credit for Everyday Spending

When money is tight, cards get used for food, fuel, childcare or unexpected costs. Small amounts add up, especially when interest is applied month after month.

Easy Spending with Contactless

Contactless, Apple Pay and saved card details make spending simple. It’s easy to spend without feeling it in the moment, then struggle when the statement arrives.

Will credit card debt affect my credit rating?

Credit card debt has a direct impact on your credit score, and problems can show up even if you’re still making payments.

Lenders look at how much of your available credit you’re using. If your cards are close to their limits, this signals financial pressure and can lower your score. High balances across several cards often cause damage long before any payments are missed.

Missed or late payments are recorded on your credit file and stay there for six years. If an account falls far enough behind, a default may be registered with the credit reference agencies. This makes it much harder to get credit, a mortgage, or even some mobile phone contracts.

If the debt escalates, a County Court Judgment can be added to your credit report. This remains for six years and has a serious effect on borrowing.

Even when credit card debt is later dealt with through a formal solution, the history stays on your file for the full six-year period. This is why dealing with problems early, before balances spiral further, can make a real difference.

What happens if I can’t afford to pay my credit card bill?

If you fall behind on credit card payments, lenders will usually follow a set pattern.

Reminder letters and calls – The card provider will contact you to bring missed payments up to date. Interest and charges usually continue to be added, which increases the balance.

Default notice – If arrears aren’t cleared, you may receive a formal default notice. This gives you a set period to catch up or agree a payment arrangement before further action is taken.

Debt collection – If the account remains unpaid, it may be passed to a debt collection agency or sold to a debt purchaser. Contact often becomes more frequent at this stage.

Court action – If an agreement is not reached, the lender may apply for a County Court Judgment (CCJ), which will order you to repay the debt.

Bailiff action – If a CCJ is granted and payments aren’t kept up, enforcement action may follow. This may include bailiffs, depending on the circumstances.

Many people reach this point after years of minimum payments and rising interest, rather than sudden non-payment. When that happens, structured credit card debt help can stop the situation from escalating further.

Can you write off credit card debt?

Credit card debt doesn’t disappear on its own, but it can be dealt with through formal debt solutions. If repayments are no longer manageable, writing off part of the balance may be possible.

Individual Voluntary Arrangement (IVA)

An IVA is a formal, legally binding agreement set up by a licensed Insolvency Practitioner. It’s often used to deal with credit card debt where balances are no longer reducing due to high interest and minimum payments.

Your Insolvency Practitioner will work with you to review your income, essential living costs, and all credit card balances. A single monthly payment is then set at a level you can realistically afford.

IVAs usually last five or six years. Once approved, interest and charges on included credit cards are frozen, and card providers must stop contacting you. Many people with credit card debt repay only part of what they owe. A debt write-off of between 25% and 73% is realistic in some cases, depending on your circumstances and creditor approval*.

When the IVA is completed, any remaining qualifying unsecured credit card debt included in the arrangement is written off**.

Check if You Qualify for an IVA

Debt Relief Order (DRO)

A Debt Relief Order may be suitable if credit card debt has built up at a time when income is very low, and there’s no realistic way to repay it. A DRO is usually more suitable where income is unstable or very limited

To qualify, your total unsecured debts must be under £50,000, you must have very little disposable income after essential costs, and you must not own assets over the allowed limit (currently £2,000).

If credit card debt is included in a DRO, you make no payments towards it for 12 months. During this time, card providers cannot chase you, add interest, or take legal action. Your situation is reviewed during the year, and if your finances do not improve, the included credit card debt is written off at the end of the 12-month period.

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Bankruptcy

Bankruptcy can clear most unsecured credit card debt, usually within 12 months. Once you are declared bankrupt, credit card providers must stop contacting you, and the included debts are written off when the bankruptcy period ends.

However, bankruptcy has serious consequences. Assets like savings, vehicles, or property may be sold, and you may be required to make payments for up to three years if you have spare income. Your finances are closely controlled, and bankruptcy stays on your credit file for six years.

Because of its impact on housing, employment, and long-term finances, bankruptcy is usually considered only when other credit card debt solutions are not suitable.

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Debt Management Plan (DMP)

A Debt Management Plan is an informal arrangement where you make reduced monthly payments towards your credit cards based on affordability.

While this can ease short-term pressure, interest is not automatically frozen, and credit card providers are not required to agree. Balances may continue to grow, creditor contact can continue, and there is no fixed end date.

With credit card debt, this often means paying back everything you owe over many years, especially where interest rates are high. DMPs are usually less suitable where credit card debt is long-term or already at an unmanageable level.

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Tips for Dealing With Credit Card Debt in the UK

If credit card balances are starting to feel hard to manage, there are a few practical steps that can help steady things and prevent the situation from getting worse.

Stop Using The Cards

It’s difficult to reduce balances while still spending on them. Remove cards from Apple Pay, delete saved card details online, and avoid using credit to cover everyday costs.

List All Your Credit Card Balances

Write down each card, the balance, interest rate and minimum payment. Seeing everything in one place gives a clearer picture of what you’re dealing with.

Pay More Than The Minimum If Possible

Even small increases can make a difference. Paying £20-£30 extra each month can reduce how much interest builds up and shorten the repayment time.

Check for Interest & Charges

Review statements for late fees or charges and query anything that doesn’t look right. Some card providers may agree to a temporary breathing space if you’re struggling.

Switch to a 0% Card

A 0% balance transfer card can help in the short term if your credit score is still strong and the balances are relatively low. Moving debt to a 0% card stops interest for a fixed period, which means more of your payment goes towards clearing the balance.

However, this only works if you can realistically repay the debt before the 0% period ends. Many deals last 12-24 months, and a transfer fee usually applies. If the balance isn’t cleared in time, interest is added again, often at a high rate.

Get Advice Early

If balances aren’t reducing or payments feel tight, getting advice sooner gives you more options. Formal credit card debt help can stop interest, deal with creditors, and give you a clear way forward rather than letting debt continue to grow.

Need help with Credit Card Debt? Contact NDH Financial Today

If you’re doing everything you can and the balances still aren’t coming down, it can be exhausting. Paying each month and watching interest cancel it out leaves many people feeling stuck and unsure what to do next.

Our debt consultants will work with you to review your income, essential living costs, and credit card balances, then explain which options fit your situation. If an IVA is suitable, it can combine credit card debt into one monthly payment based on affordability and provide a clear endpoint.

The consultation is confidential, no-obligation, and focused on practical next steps.

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Have More Questions? Our IVA Learning Hub Can Help

We know you might have questions and that's fine. We can answer most of those on our call.

But we've also built our learning hub so that you can learn more about an IVA and see if one is right for you.

Click below to check it out.

IVA Learning Centre