What you need to know about persistent debt

Persistent debt

What you need to know

What is persistent debt?

What is persistent debt?

We’re supporting new rules that have been introduced by the Financial Conduct Authority (FCA) with the aim of helping credit card customers avoid long-term debt. If you’ve been making minimum or low payments over the past 18 months, you’ve paid more in interest, fees and charges on your Barclaycard than towards paying back what you’ve borrowed. And under the new rules, this means your account is in something called ‘persistent debt’.

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

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

We’ll keep an eye on your account and let you know. We’ll then suggest a personalised payment amount that will help you get out of persistent debt.

What do I need to do next?

What do I need to do next?

Before you change your payments, please make sure you can afford the increase. If you can, you can update your payments in one of these ways:

Log into Barclaycard online servicing and set up or update a fixed Direct Debit with the new amount

Call us on 0800 151 0900 and set up or update a fixed Direct Debit with the new amount.

For any persistent debt questions, please call 0808 169 7904.

Why it’s important that you take action

Here’s a demonstration of how different monthly payments can affect the time it’ll take to clear a balance of £5,000 – and the amount of interest you’ll pay. The top figure is your current minimum payment, and the bottom figure is what we’d suggest as your new personalised payment amount.

Note – this example is a guide based on a balance of £5,000 with an interest rate of 19.9% APR with no balance transfer or purchase offers.

  • It’s calculated on approximate payment rates which vary by provider and product
  • It assumes no additional spend on the card, no fees are incurred and the same static interest rate is paid on all balances

Try it for yourself with our repayment calculator.

Carry on with your current minimum payment

£125 minimum payment - 31 years, 11 months, £7422 in interest

(This decreases as your balance goes down)

Your new personalised payment amount

£149 fixed payment - 4 years, £2054 in interest

(Fixed at £149 for 4 years)

  • Things you need to know about Persistent Debt

  • Things you need to know about your payments

  • Things you need to know about Paydown Plans

Worried about debt? We can help

Are you finding it difficult to stay on top of your finances? Has a change left you with less money to pay your bills? You’re not alone. Visit our money worries hub to see how Barclaycard has helped people who may be in similar situations to you.

For free, independent advice, you can also contact

Money Advice Service - visit moneyadviceservice.org.uk/persistent-debt

StepChange Debt Charity – call them on 0800 054 6734 or go to stepchange.org. They’ll help you stay in control of your finances by creating a budget with you. By understanding your budget better, you’ll know if you can cut back on spending in some areas and pay more towards your balance.

National Debtline – if you live in England, Scotland or Wales, go to nationaldebtline.org or call 0808 808 4000. For help managing your money, use their digital device tool.

Citizens Advice – visit your local Citizens Advice or go to citizensadvice.org.uk

Samaritans - call 116 123 at any time or email jo@samaritans.org