What persistent debt is and what to do about it.

Persistent debt just means that over a long period of time (usually around 18 months) you’ve paid more in interest, fees and charges than you’ve managed to reduce from your actual balance. Basically, it means your money’s gone towards keeping the debt ticking over rather than paying it off.  

So, for example, if you’ve only been making the minimum payments on your credit card for a while, your lender might get in touch about tackling your persistent debt. This is because the Financial Conduct Authority (FCA) now requires lenders to spot when this is happening and reach out to offer support.  

Getting contacted about persistent debt isn’t anything to worry about, it’s just your lender following the law.