What to Do If You’re Struggling With Credit Card Debt
If you’re finding it difficult to keep up with your credit card payments, there are several steps you can take to improve your situation. Depending on your circumstances, your card provider might agree to reduce or temporarily pause your payments.
Avoid Adding to Your Debt
Try not to make further purchases using your credit card. By stopping new spending, you’ll have a better chance of regaining control over what you owe.
Check for More Urgent Debts
Before tackling your credit card debt, see if you have more critical financial obligations—known as priority debts. These include:
- Rent or mortgage payments
- Energy bills (gas and electricity)
- Council tax
- Court fines
Failing to address these first could lead to serious consequences, such as eviction or disconnection of your utilities. Make sure any priority debts are handled before focusing on credit cards.
Are You Legally Responsible for the Debt?
You’re responsible if you signed a credit agreement with the provider. In some cases, you may have signed jointly with another person, such as a spouse or partner. If both names are on the contract, both of you are equally liable—even if the other person stops paying.
If you’re just an additional cardholder and didn’t sign the original agreement, you’re not liable for the debt. If the provider is chasing you for payment in this case, explain the situation. If they persist, you can escalate the issue to the Financial Ombudsman Service, which handles complaints about financial services.
If the Lender Broke the Rules
Sometimes a credit card company may not follow proper procedures when you apply. They might have to write off your debt if, for instance:
- They failed to assess whether you could afford the repayments
- You were pressured into signing
- You didn’t fully understand the terms
If any of these apply to you, it’s best to speak with a financial adviser who can help you challenge the debt.
Don’t Ignore Letters About the Debt
If you’ve received a letter about your debt, act quickly. Ignoring it can make the situation worse.
- If the letter says you’re being taken to court, find out how to respond to a court claim.
- If bailiffs are mentioned, look into how you can stop them from visiting.
Repayment Plan Offers
If you’ve had the debt for 36 months or more, your credit card company might send you a repayment offer. This plan aims to help you clear the balance within four years. If you don’t accept it, your card may be deactivated.
If the proposed payments are too high, contact the company and explain what you can afford—or let them know if you can’t pay at all. Also, request that they stop adding interest or charges during this time.
If you feel the company is being unreasonable, consider filing a complaint. The Financial Ombudsman Service can help if you’re unsure how to do this.
Budget to See What You Can Afford
If you’re responsible for the debt, the first thing to do is create a budget. This will show how much income you have left after covering essentials and priority bills. That remaining amount is your disposable income.
Gather your recent:
- Bank statements
- Payslips
- Credit and debit card statements
Use these to work out what you can realistically contribute toward your credit card payments.
Try to pay at least the minimum repayment to avoid fees and protect your credit score. If possible, set up a direct debit so your payment is made automatically each month.
Save a copy of your budget—it can support any request for reduced payments if you need to show your lender what you can afford.
If You Have More Than One Credit Card
Make sure to cover the minimum payments on each card if you can. If you have extra funds, prioritize the card with the highest interest rate, as this will save you more in the long run.
If You Can Only Manage the Minimum Payments
Continue making those payments to avoid extra charges, though be aware that interest will still accumulate.
If you don’t see your situation improving soon, you might consider:
- Transferring your balance to a card with a lower interest rate
- Taking out a low-interest loan to pay off the card
Before choosing a new card or loan, check for:
- Balance transfer fees
- Interest rates and terms
- Any introductory interest-free periods
Only use these new credit options to pay down your existing debt, not for new purchases. Avoid loans secured against your home—like a second mortgage—as missed payments could result in losing your home.
If You Can’t Get More Credit
If your credit score is low, you might not qualify for another loan or credit card. This could happen if you’ve missed payments or applied for credit frequently.
Check your credit report to make sure the information is correct. If there are errors, correcting them could improve your score. You can do this without negatively affecting your rating. Visit the Money Helper website to learn how to check your score.
Meanwhile, continue paying what you can on your current card and speak with your provider about freezing interest and charges.
If You Can’t Afford Even the Minimum Payment
Contact your credit card company immediately. Share your budget with them and explain any priority debts you’re also dealing with.
If your situation is expected to improve soon, ask them to:
- Pause your payments temporarily, or
- Set up a short-term repayment plan that matches your budget
If you don’t see any improvements coming in the near future, it might be time to explore more formal debt solutions. These can include debt relief orders, individual voluntary arrangements (IVAs), or bankruptcy. A debt adviser can help you understand your options.
Help With Cost of Living
Let your card provider know if you’re struggling due to the rising cost of living. The Financial Conduct Authority (FCA) requires lenders to support customers facing financial hardship.
Look into other types of cost-of-living assistance to ease pressure on your finances.